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15 Percent Global Corporate Tax ‘Very Significant Step Forward’: OECD Official
Epoch Times ^ | 06/07/2021 | Tom Ozimek

Posted on 06/07/2021 6:34:40 PM PDT by SeekAndFind

A top official at the Organization for Economic Cooperation and Development (OECD), which is hosting talks on a global corporate tax being pushed by the Biden administration, said a 15 percent minimum rate would be a “very significant step forward” that still leaves countries with enough scope to compete to attract multinationals to their jurisdictions.

OECD Secretary-General Mathias Cormann made the remarks in an interview with Bloomberg on June 7, which followed a landmark agreement on the tax on June 5 among senior officials from the Group of Seven (G-7) countries, which includes the United States. The G-7 countries agreed to a minimum global corporate tax rate of at least 15 percent, which would apply to overseas profits.

“It’s important we strike the right balance,” Cormann told Bloomberg. “If we were able to achieve a circumstance where all multinational companies operating globally are required to pay at least 15 percent on their profits, I think that is a very significant step forward” that would still leave enough room for “appropriate competition.”

In May, the U.S. Treasury Department said it would push for a 15 percent global corporate tax rate as a “floor” from which “discussions should continue to be ambitious and push that rate higher.”

Treasury Secretary Janet Yellen first proposed a 21 percent global corporate minimum tax rate on U.S. multinationals in April as part of President Joe Biden’s $2.2 trillion infrastructure spending proposal, which would be financed largely by increasing the domestic U.S. corporate tax rate to 28 percent.

In calling for a 15 percent minimum tax on corporations, Treasury said in a statement that “with the global corporate minimum tax functionally set at zero today, there has been a race to the bottom on corporate taxes, undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments.”

A May analysis by Bloomberg Economics showed that the median tax rate for the world’s top 50 firms fell to 17.4 percent last year from 35.5 percent in 1990. Tech giants Facebook and Amazon both paid less than that in 2020, with rates of 12.2 percent and 11.8 percent, respectively.

While France and Germany backed the 21 percent, other countries have pushed for a lower rate, as previous OECD discussions on the subject had centered around 12.5 percent, the rate charged by Ireland.

The Biden administration’s efforts for the adoption of a global corporate minimum tax rate is a bid to at least partially counteract some of the disadvantages that might arise from the president’s proposal to raise the U.S. corporate tax rate to 28 percent, a move panned by Republicans and business groups as hurting the competitiveness of U.S. companies and slowing wage growth.

The G-7 agreement sets the stage for talks in July by the broader Group of Twenty (G-20) countries, which would then be followed by discussions among some 140 nations under the auspices of the OECD. If a deal is reached at that level, individual countries would still need to pass laws to implement it.

Some economists have voiced skepticism over the Biden administration’s push for a global minimum tax rate for corporations, saying not only would it “frustrate” the free market, but it would face pushback from lawmakers in various countries.

“At the end of the day, any international agreement is essentially toothless due to the existence of national sovereignty,” Gigi Foster, professor of economics at the University of New South Wales (NSW), told The Epoch Times.

“The incentive for individual countries to offer appealing tax treatment will remain, no matter how strong the international pressure on a country to conform to some nominated standard.”



TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: corporatetax; globaltax; oecd
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1 posted on 06/07/2021 6:34:40 PM PDT by SeekAndFind
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To: SeekAndFind

Gee, I wonder what would happen if a group of companies got together and agreed on a floor price for products?


2 posted on 06/07/2021 6:39:22 PM PDT by JoSixChip (2020: The year of unreported truths. )
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To: SeekAndFind

Who just the loot?


3 posted on 06/07/2021 6:40:38 PM PDT by ASOC (This space for rent)
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To: SeekAndFind

Yeah I’ll bet the chinks are good with it.


4 posted on 06/07/2021 6:42:37 PM PDT by technically right
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To: SeekAndFind

Why stop at 15%?

All money rightfully belongs to government bureaucrats, after all.


5 posted on 06/07/2021 6:43:15 PM PDT by E. Pluribus Unum (Racists are obsessed with race, make everything about race, and project racism onto everybody else.)
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To: SeekAndFind

Personally, I think our government should protect us from Force, Fraud, and Coercion. As part of that, they should be protecting us from thieves.

And if people overseas are telling US businesses to pay some 15% “tax rate”, then I think the US government is failing it’s basic duty under our social contract (the Constitution). If foreigners can just “take our stuff” then our government is useless.


6 posted on 06/07/2021 6:43:42 PM PDT by ClearCase_guy ("I see you did something -- why you so racist?")
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To: SeekAndFind

Government is the greediest, most corrupt and murderous force on Earth.

And global government will be the greediest, most corrupt and murderous of all.


7 posted on 06/07/2021 6:45:12 PM PDT by E. Pluribus Unum (Racists are obsessed with race, make everything about race, and project racism onto everybody else.)
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To: SeekAndFind
"Global*"

* = Excluding China

8 posted on 06/07/2021 6:45:23 PM PDT by CivilWarBrewing (Get off my back for my usage of CAPS, especially you snowflake males! MAN UP!)
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To: SeekAndFind
Abolutely not. It's a commie money-grab, that's all.

9 posted on 06/07/2021 6:45:34 PM PDT by BitWielder1 (I'd rather have Unequal Wealth than Equal Poverty.)
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To: ClearCase_guy

Protecting us from thieves......

Then they would have to protect us from themselves....

They are not gonna willingly do that.


10 posted on 06/07/2021 6:45:35 PM PDT by Secret Agent Man (Gone Galt; Not Averse to Going Bronson.)
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To: ClearCase_guy

It was the United States that brought this up. It seems we are the bad guys in this.


11 posted on 06/07/2021 6:47:45 PM PDT by napscoordinator (Trump/Hunter, jr for President/Vice President 2016 )
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To: SeekAndFind

Who gets the money, the UN ?


12 posted on 06/07/2021 6:49:08 PM PDT by butlerweave
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To: E. Pluribus Unum

“Why stop at 15%?”
Don’t worry, they won’t. That’s just the starting point.


13 posted on 06/07/2021 6:49:38 PM PDT by ocrp1982 ( Bibicly)
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To: SeekAndFind
Yeah, because the OPEC agreements worked so well. You know, where all the oil producing nations agreed on how much they'd produce.

Instead they sold it out the back door, undercutting each other wherever they could and going to war with each other to protect their fiefdoms.

14 posted on 06/07/2021 6:52:55 PM PDT by T.B. Yoits
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To: butlerweave

The Global Overlords. This is why we have a Constitution to stop us from getting into this kind of nonsense.


15 posted on 06/07/2021 6:56:26 PM PDT by BipolarBob (I wish I was 14 again so I could ruin my life in a completely different way. I've got ideas.)
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To: SeekAndFind

Canada keeps a low corporate rate of 15 percent among the G7.

This “deal” protects their deliberately low rate.


16 posted on 06/07/2021 6:59:50 PM PDT by Nextrush (FREEDOM IS EVERYBODYS BUSINESS, REMEMBER PASTOR NIEMOLLER)
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To: SeekAndFind

U.S. Democrats ceding sovereignty to other nations.


17 posted on 06/07/2021 7:01:33 PM PDT by kaehurowing
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To: SeekAndFind

Where’s the international IRS to enforce it?

Didn’t think that one out, did you?


18 posted on 06/07/2021 7:01:58 PM PDT by struggle
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To: SeekAndFind
The global communists, formerly referred to as the Comintern, are certainly on an unstoppable roll...

Global taxes, global perversion celebration, global climate change propaganda & goals, global laws, and globalization (defacto seizure) of American properties...

The American people do not give a damn anymore...
Just gimme more stim-money...

Bow down!... Obey!... Snitch!...

19 posted on 06/07/2021 7:04:02 PM PDT by SuperLuminal (Where is another Sam Adams now that we desperately need him?)
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To: SeekAndFind
"...undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments.”

Oh don't worry - when those vote-buying scams get critical enough, they will just stick guns in the faces of the producers and say "Hand it over!", they way they always do.

20 posted on 06/07/2021 7:04:29 PM PDT by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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