G7 reaches deal on minimum corporate tax to make tech giants pay fair share

  

Category:  World News

Via:  hallux  •  6 months ago  •  29 comments

By:   The Associated Press - CBC

G7 reaches deal on minimum corporate tax to make tech giants pay fair share

The 'Great Reset' weds the 'New World Order' ... let the bells ring out!


S E E D E D   C O N T E N T



U.S. treasury secretary says tax will level the playing field for competition

Britain's treasury chief said the world's richest countries have signed a landmark global agreement to confront tax avoidance and make sure giant tech companies pay their fair share.

Rishi Sunak said finance ministers from the Group of Seven (G7) leading industrialized nations signed the agreement on the second and final day of meetings in London.

They said they have agreed to commit to a global minimum corporate tax of at least 15 per cent on a country by country basis.

"I'm delighted to say that G-7 finance ministers today, after years of discussions, have reached a historic agreement to reform the global tax system to make it fit for the global digital age and crucially to make sure that it's fair so that the right companies pay the right tax in the right places," Sunak said in a video message posted on Twitter. The agreement comes as major economies are aiming to discourage multinationals from shifting profits — and tax revenues — to low-tax countries regardless of where their sales are made.

The meeting of finance ministers was held ahead of an annual summit of G7 leaders scheduled for June 11-13 in Carbis Bay, Cornwall in southwest England. The U.K. is hosting both sets of meetings because it holds the group's rotating presidency.

U.S. Treasury Secretary Janet Yellen said the finance ministers made a "significant, unprecedented commitment" toward achieving the tax rate to end a "race to the bottom" on corporate taxation.

"The global minimum tax would also help the global economy thrive, by levelling the playing field for businesses and encouraging countries to compete on positive bases," such as education, research and infrastructure, Yellen said in a statement.

CanadianFinanceMinisterChrystia Freeland also praised the agreement. She tweeted that it would ensure a "fair and level playing field" in the global economy for Canadians and Canadian businesses.

Google said on Saturday that it "strongly supports" the work being done to update international tax rules


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Hallux
Sophomore Principal
1  seeder  Hallux    6 months ago

'Great Reset' + 'New World Order' ... scary concepts for some, the universe is unfolding as it should for others.

 
 
 
Thrawn 31
PhD Guide
1.1  Thrawn 31  replied to  Hallux @1    6 months ago

Sounds like some radical, Marxist, liberal, progressive, communist, socialist, fascist plot to me!

 
 
 
Hallux
Sophomore Principal
1.1.1  seeder  Hallux  replied to  Thrawn 31 @1.1    6 months ago

'We' can only hope!

 
 
 
Nerm_L
Masters Principal
2  Nerm_L    6 months ago

In other words, Congress really isn't needed for anything.

Notice there isn't a lot of discussion about how and who will enforce a global minimum tax.  And legislative approval isn't needed at all; finance ministers will simply impose the tax.   So much for democracy that's been harped about recently in the news.  Democracy is fake news, after all.

Next step on the globalization ride will be revenue sharing from a global tax.  Rest assured there will be some in finance taking a skim.

 
 
 
Hallux
Sophomore Principal
2.1  seeder  Hallux  replied to  Nerm_L @2    6 months ago
Notice there isn't a lot of discussion about how and who will enforce a global minimum tax.

It's a short article, the conference has just started and you want the nitty-gritties? Even though an accord might be signed, it will take months if not years for all the minutia to be collated into something that will pass multiple levels of government. Relax.

 
 
 
Greg Jones
PhD Expert
2.1.1  Greg Jones  replied to  Hallux @2.1    6 months ago
it will take months if not years for all the minutia to be collated into something that will pass multiple levels of government. Relax.

That's not gonna happen, since the left's grip on government is already starting to loosen

 
 
 
Hallux
Sophomore Principal
2.1.2  seeder  Hallux  replied to  Greg Jones @2.1.1    6 months ago
That's not gonna happen, since the left's grip on government is already starting to loosen

In that's the case, I better buy a canoe and a shovel.

 
 
 
Nerm_L
Masters Principal
2.1.3  Nerm_L  replied to  Hallux @2.1    6 months ago
It's a short article, the conference has just started and you want the nitty-gritties? Even though an accord might be signed, it will take months if not years for all the minutia to be collated into something that will pass multiple levels of government. Relax.

The nitty-gritty isn't necessary to explain general principles.  The principle being put forward is that all corporations around the world will be subjected to a minimum 15 pct tax.  But that also requires some sort of general principle to enforce the tax.

Simply making a broad agreement that taxes will be imposed won't prevent tax havens.  Countries can choose to not cooperate just as they do now.  In general, how will this agreement change anything?

 
 
 
Hallux
Sophomore Principal
2.1.4  seeder  Hallux  replied to  Nerm_L @2.1.3    6 months ago

G-7 is a start, then onto G-20, then onto WTO. Every journey starts with ...

 
 
 
Nerm_L
Masters Principal
2.1.5  Nerm_L  replied to  Hallux @2.1.4    6 months ago
G-7 is a start, then onto G-20, then onto WTO. Every journey starts with ...

Short cuts and quick fixes isn't a journey.  That's a nonsensical analogy.

Where do these corporations get the money to pay taxes?  There isn't a magic money tree; the money has to come from somewhere.

I'm not opposed to taxing consumption which is ultimately what global minimum corporate taxes accomplishes.  The tax burden will be passed onto consumers.  But these broad, sweeping, populist, supply-side ideas are indiscriminate.  Not all consumption is created equal.

Why should the National Football League be exempt from taxes?  Will the NFL now be required to pay a minimum tax?  What does financial ministers in Europe have to do with American professional sports?  Why should the NFL be allowed a tax haven in the United States while General Mills is required to pay more in taxes?  The NFL sells stuff internationally, too.

 
 
 
Ender
Professor Principal
2.2  Ender  replied to  Nerm_L @2    6 months ago

So if there was a global minimum tax on corporations, congress would be obsolete?

Hahaha

Who would enforce it? It wouldn't have to be enforced. All countries that agree to it would implement it.

It is not a 'global tax'. It is a global minimum tax that corps will pay each country to stop them from going from country to country looking for no taxes.

I don't see how some reach the hair on fire about some global marxists when it is not a tax paid to some unknown organization.

It is a standard of tax the corps will pay no matter the country yet it will be paid to the country they are in.

 
 
 
Nerm_L
Masters Principal
2.2.1  Nerm_L  replied to  Ender @2.2    6 months ago
It is not a 'global tax'. It is a global minimum tax that corps will pay each country to stop them from going from country to country looking for no taxes.

Well, of course it's a global tax.  The claim that the agreement is intended to address tax avoidance clearly means this would be a global tax.  The intent is for all corporations around the world to pay a minimum tax of 15 pct; that's a global tax.

It is a standard of tax the corps will pay no matter the country yet it will be paid to the country they are in.

Yes, corporations paying a standard tax no matter the country is precisely why this is a global tax.  The next phase will be revenue sharing between countries.  No doubt those in finance will be taking a skim, too.

You know, tax havens can be dealt with using trade laws.  But that would require abandoning the 'free trade' nonsense adopted by these international organizations.  What is amazing is how so-called progressives give such vocal support for policies that come from the 'free trade' Republican playbook.  The entire world is becoming Republicans.

 
 
 
Ronin2
PhD Quiet
2.2.2  Ronin2  replied to  Ender @2.2    6 months ago
So if there was a global minimum tax on corporations, congress would be obsolete?

Ever heard the saying "Congress has the power of the purse"? Well Biden just did an end around Congress. Presidents cannot levy taxes, fines, fees, or anything else.

Wonder how long before either the Republicans or several multi national corporations yank this before the courts? My guess is they will before the ink is even dry.

 
 
 
Ender
Professor Principal
2.2.3  Ender  replied to  Nerm_L @2.2.1    6 months ago

It is still only a tax collected in the country in which the corp resides.

Messing with trade law doesn't work either, as we have seen.

 
 
 
Ender
Professor Principal
2.2.4  Ender  replied to  Ronin2 @2.2.2    6 months ago

Why would it go to court? If I am not mistaken, we already have a minimum above that.

 
 
 
Nerm_L
Masters Principal
2.2.5  Nerm_L  replied to  Ender @2.2.3    6 months ago
It is still only a tax collected in the country in which the corp resides. Messing with trade law doesn't work either, as we have seen.

But the agreement requires all countries to collect the same tax.  And if the minimum corporate tax is not applied uniformly then tax havens will become even more attractive.

Messing with trade law doesn't work either, as we have seen.

Really?  Is that based upon tariffs being paid by consumers through increased prices?  Why would a corporate tax be any different?

 
 
 
Ronin2
PhD Quiet
2.2.6  Ronin2  replied to  Ender @2.2.4    6 months ago

Because the US cannot enforce a minimum % corporate tax globally. Biden doesn't have the authority, period.

 
 
 
Ender
Professor Principal
2.2.7  Ender  replied to  Nerm_L @2.2.5    6 months ago
But the agreement requires all countries to collect the same tax

Not from what I gather. It is just a minimum. Ours would not drop to 15.

 
 
 
Nerm_L
Masters Principal
2.2.8  Nerm_L  replied to  Ender @2.2.7    6 months ago
Not from what I gather. It is just a minimum. Ours would not drop to 15.

Which of the G7 countries have a corporate tax rate less than 15 pct?

Will corporations addressing climate change be required to pay a minimum tax of 15 pct?  What about electric vehicle manufacturers?  Hamstringing tax policy with international commitments limits flexibility to support innovation and interferes with incentives to address national problems.

Corporate taxes are passed along to consumers the same way as tariffs.  Raising domestic corporate taxes while lowering tariffs provides an economic advantage to exporting countries, like China.

 
 
 
Ender
Professor Principal
2.2.9  Ender  replied to  Nerm_L @2.2.8    6 months ago

It is still a minimum set by several countries. In all honesty I would think this is something the right wing would like. Or use to...

It is trying to make it to where there are not tax havens for corps.

Oh that's right. I forgot I was talking to the zero tax crowd...

Corporations will pay the tax they have to. Acting like the consumer is an unending supply to the whims of corps is a misnomer.

Also not getting into pay structure which is severely broken.

 
 
 
Nerm_L
Masters Principal
2.2.10  Nerm_L  replied to  Ender @2.2.9    6 months ago
It is trying to make it to where there are not tax havens for corps.

Which of the G7 countries are tax havens? 

The minimum corporate tax agreement is between CanadaFranceGermanyItalyJapan, the United Kingdom, and the United States.  The agreement is not going to increase tax revenue for the United States; the United States will likely lose tax revenue since the tech giants are located in the United States.

 
 
 
Ender
Professor Principal
2.2.11  Ender  replied to  Nerm_L @2.2.10    6 months ago

None of them are except maybe one that wants an exemption.

The idea is to start a standard. That maybe the G20 could invoke.

A start.

It is not about increasing or decreasing any particular economy or country. It is about equalizing the playing field.

We would not lose any revenue because of it.

 
 
 
Greg Jones
PhD Expert
3  Greg Jones    6 months ago

Since corporations don't really pay taxes, but simply pass them on as a cost of doing business, the end user of goods and services winds up as the ultimate loser

And what constitutes a "fair share" and how is it determined?

 
 
 
Hallux
Sophomore Principal
3.1  seeder  Hallux  replied to  Greg Jones @3    6 months ago

I pay 15% GST which absolves me from the burden of private health insurance ... it's a big win for my pocket book.

 
 
 
Ender
Professor Principal
3.2  Ender  replied to  Greg Jones @3    6 months ago

Oh no, we should stop all corporations from paying any taxes at all....

Oh wait...

 
 
 
Greg Jones
PhD Expert
3.2.1  Greg Jones  replied to  Ender @3.2    6 months ago

I know, I know....it's hard for the tax and spend crowd to understand economic reality

 
 
 
Ender
Professor Principal
3.2.2  Ender  replied to  Greg Jones @3.2.1    6 months ago

What is hard to understand is the give corps a free ride crowd...

 
 
 
Snuffy
Junior Quiet
4  Snuffy    6 months ago

Interesting.  As China is not part of the G7, will they (and other countries not part of the G7) be held to the same standards or will businesses flock to those other countries to avoid the tax?

 
 
 
Ronin2
PhD Quiet
4.1  Ronin2  replied to  Snuffy @4    6 months ago

Neither is Russia and several other major players in the rest of the world.

I am sure they will all take the minimum 15% global tax for corporations in stride./S

 
 
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