That Global Minimum Tax

Biden’s Sec Treasury recently proposed a policy that I can get on-board with (there are some few that I can support)…….

Now it appears that more and more countries are signing on to this policy…..
Some 130 countries have backed a global minimum tax as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates. The agreement announced Thursday by the Organization for Economic Cooperation and Development also provides for taxing the largest global companies in countries where they earn profits through online businesses but may have no physical presence. The agreement followed a proposal from President Biden for at least a 15% rate, an initiative that propelled the talks toward meeting a deadline for a deal by the middle of this year. The deal now will be discussed by the Group of 20 countries at meetings later this year, the AP reports, in hopes of finishing the details in October and implementing the agreement in 2023.
 
Under the deal, countries could tax their companies’ foreign earnings if they go untaxed through subsidiaries in other countries. That would remove the incentive to use accounting and legal schemes to shift profits to low-rate countries, since the profits would be taxed at home anyway. Not all of the 139 countries that joined the talks signed on to the deal. The proposal to tax countries where they have sales but no physical presence, which would require countries to sign up for a multilateral convention, excluded extractive companies such as oil and mining and regulated banks. The deal now faces more technical work and review by the Group of 20 countries. In the US, Biden has proposed a 21% minimum rate on overseas earnings of big US companies to deter them from shifting profits to tax havens. Biden’s US tax would need to be approved by Congress.
Like I said….I believe this is a much needed tax policy….
 
We will see just how effective it truly is or is this just a tactic to quell some larger issues.
 
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4 thoughts on “That Global Minimum Tax

  1. Backing the idea is one thing. Implementing the laws is another. I am waiting for the lobbying to start, and the threats of lost jobs in the future.
    Best wishes, Pete.

  2. “Some 130 countries have backed a global minimum tax as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates.”

    What a bunch of absolute narishkeit! 130 Independent Countries have 130 reasons why they share nothing in common with the United States. Break up the Central Bank (Federal Reserve), return back to the States the power to regulate trade and industry within that specific State within the Federal Union of States, and over night the Corporate international monopoly evaporates like as does an early morning dew! The problems facing Americans today — neither particularly complex and difficult to resolve. The problems facing America today simply require returning to the basic fundamentals of government. Its really just that simple.

    1. his is about making those slimy corporations that avoid taxes pay their share…anyone that is against that is garden slug. chuq

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