A group of 136 countries set a minimum global tax rate of 15% for big corporations

by Disillusioned JW 29 Replies latest social current

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  Disillusioned JW

  A group of 136 countries set a minimum global tax rate of 15% for big corporations. That is a major goal accomplished by the Biden administration. Seehttps://www.wsj.com/articles/countries-agree-to-global-deal-to-curb-tax-avoidance-11633709979 .
  

  If corresponding legislation gets passed into law in the USA it will be much harder for corporations doing business in the USA to move their operations out of the USA to avoid paying their fair share of taxes. It also would prevent those corporations with operations in the USA from having their headquarters outside of the USA as a successful way to avoid paying federal taxes (meaning they would have to pay the tax despite having their headquarters outside of the USA). Making corporations pay at least some amount of tax is something Elizabeth Warren campaigned for as a Presidential candidate for the Democratic party nomination. It is also what Joe Biden wanted. This is great news for USA workers.

  The article says the following.

  "Treasury Secretary Janet Yellen said the floor set by the global minimum tax was a victory for the U.S. and its ability to raise money from companies. She urged Congress to move swiftly to enact the international tax proposals it has been debating, which would help pay for extending the expanded child tax credit and climate-change initiatives, among other policies.

  ... the signatories will have to change their national laws and amend international treaties to put the overhaul into practice. The signatories set 2023 as a target for implementation, which tax experts said was an ambitious goal."
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  Anony Mous

  It won’t go into effect until 10 years from now, so the effects on those poor countries won’t be felt until long after Biden is gone.

  Ireland made it so it said 15% instead of at least 15%, so it can’t be adjusted later, and the global average is already at 20%. So basically it will do nothing for the rich countries like the US where corporate tax rates are already the highest in the world while bankrupting poorer countries as they implement these measures.

  Not only that, it has no chance of passing in the US and most of the unstable countries that signed onto this will reject it as soon as they notice the deleterious effects of raising taxes on the production.
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  hoser

  When corporations are taxed higher they will either expand their operations to avoid paying taxes or pay less dividends to their shareholders.
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  DesirousOfChange

  Hasn’t everyone noticed what happens when fuel costs go up? Business raises prices on everything to cover the increase. (Ie, chicken is said to be 12% higher now)

  Can you guess what business will do when they face higher taxes that reduce their profit? The Government rakes in more money. But YOU THE CONSUMER PAYS THE PRICE.
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  MeanMrMustard

  Corporations do not pay tax. It gets passed on, either to employees or consumers (or both).

  You can't tax your way to a better world. If you want wealth there has to be the production of the wealth by rational allocation of resources (markets).
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  MeanMrMustard

  (Ie, chicken is said to be 12% higher now)

  It is usually a bit worse than that. I've noticed it with bacon and deli meats - the price goes up and simultaneously the quantity in the package goes down.
  
  
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  FedUpJW

  Making corporations pay at least some amount of tax is something Elizabeth Warren campaigned for as a Presidential candidate for the Democratic party nomination. It is also what Joe Biden wanted. This is great news for USA workers

  This shows an glaring example of some people's willful ignorance concerning economics. And the only "good" news for workers is that they will not have to carry around nearly as much money. Of course making the average citizen a financial slave to government is what governments and their useful idiots wish.
  
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  Simon

  All the recently released data dumps for offshore accounts show that the rules don't apply to all, even when they know they are being broken.

  If a government's options are getting 5-12% or nothing, they will go for the 5-12%, what exactly happens if they don't? That's right - jack shit.

  This is all paper and nonsense to keep the plebs thinking that the game is fair when it obviously isn't.

  Large corporations will still have advantageous treatment because the politicians are easy to buy and nothing is ever really done even when the rules are broken.
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  dubstepped

  Feel free to correct me if I'm missing something here. I make no claim to understand all of the ins and outs of this. But if people get big mad and want to take all of the evil corporations money and want to see their profits decrease, will that not cripple the retirements of individuals that invest in these corporations in their 401k or IRA or other such portfolios for the future? I had this conversation with a friend once and don't remember them defending this much other than that corporations are evil and need to be punished like anyone else that has more money than them. But if these companies all start having less profitable years, won't the interest rates we all hope to get so that we can retire and not have to eat dog food go down?
  
  Aren't we all going to pay for this either in the loss of our portfolio and retirement accounts or prices will be raised on the goods and services we buy therefore we'll be paying for it there? I just don't get how this is good for workers or anyone really other than the government which is nothing but a parasite that produces nothing and takes everything they have.
  
  Again, and I mean this sincerely, explain this to me if I'm missing something. I very well may be as I'm still learning things in this world after leaving the cult and putting pieces together as I go.
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  Simon

  They often don't pay taxes, at all, which leads to the huge anomaly of small local family businesses paying more in taxes than global multinationals that have earned $billions.

  Then, they payout millions in executive and bonus pay. Little of it ends up being paid in taxes, because there are multiple "rules" along the way they can use to offset or negate it as "income".

  Anyone that thinks they are going to have a retirement hasn't looked at the US money supply recently. Whatever you have already saved or might save in future will be halved by inflation and money printing. The stock market prices reflect the fact that the system is sloshing with money, and you need exceptional returns to keep up or stand still, which normally means people taking on higher levels of risk.

  All the people paying for the boomers luxury retirements and the ever growing and lucrative government workers pensions, will see nothing for themselves and likely will see the purchasing power of their own savings eroded to a fraction of what they should have been and were probably planned.

  Where do you stash your money to retain it's future purchasing power? Gold doesn't do it, government bonds are dog shit, and tech companies can't grow forever (and all the real gains are had by "accredited investors" which discriminates against the regular public).