Posted on 07/02/2021 4:32:39 AM PDT by Sir_Humphrey
Treasury Secretary Janet Yellen announced Thursday that a group of 130 nations has agreed to a global minimum tax on corporations, part of a broader agreement to overhaul international tax rules.
If widely enacted, the GMT would effectively end the practice of global corporations seeking out low-tax jurisdictions like Ireland and the British Virgin Islands to move their headquarters to, even though their customers, operations and executives are located elsewhere.
“For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs in response. The result was a global race to the bottom: Who could lower their corporate rate further and faster? No nation has won this race,” said Yellen in a statement on the accord.
“Today’s agreement by 130 countries representing more than 90 percent of global GDP is a clear sign: the race to the bottom is one step closer to coming to an end,” Yellen said.
(Excerpt) Read more at cnbc.com ...
Most important of all, corporations do not pay taxes; they pass them on to their customers.
This is a horrible idea, a fundamental step towards one world government. Tax competition between nations is healthy and provides some level of protection to all, just as the same is true between our states.
Who is going to collect it?
Who’s in charge of this global slush fund?
Companies pay many taxes that are built into their cost of doing business and passed on to their customers, but a corporate tax isn’t one of them.
There will still be tax competition, but it will involve other forms of taxation.
“Most important of all, corporations do not pay taxes; they pass them on to their customers.”
I was in the break room at work with a young black woman. CNN was playing loudly on the TV. As a response to something the news reader said she said, “They need to tax corporations.” She was buying popcorn in the machine. I said, “Let’s suppose the government taxes the company making that popcorn. A company prices its products by a simple formula. It’s the cost plus the profit and that’s what you pay. A tax is a cost on the corporation. They will add the tax to the cost of the product, add the profit and charge you, the consumer, more. So, instead of a dollar you will now pay a dollar ten. What CNN just said was raise the price of the products to the consumer. But that doesn’t sell well, so they say, ‘hey, let’s tax the company.’ She looked startled and said, “Oh!”
I don’t know if that epiphany will carry over, but at least on that one liberal agenda item, she got it.
How courageous of them.
No such treaty will ever be ratified in the Senate. The Dems may pass tax rates that are compliant, but if there is ever a fair election in this country again, the Republicans will repeal them.
It will be so riddled with loopholes and exemptions!
Agree....who benefits??
Another money grab. You no we will not come out a winner.
Countries will just put in some loop hole so a company gets their money back anyways. It’s an idiotic gesture from an idiotic administration.
“Please explain to me how a corporate tax is passed on to a company’s customers.”
Wouldn’t it follow logically that if corporate taxes go up,
then profits go down, thereby motivating corporations to increase prices?
It’s not like they’re going to simply eat the losses, are they?
If your business got hit with a fifteen percent tax increase would you raise your prices, or live with the loss in the name of global social equity?
One world government, just vote NO.
The U.S. typically has corporate tax laws that are among the worst of any country in the world.
Corporations already have an incentive to report the smallest possible profit when computing their taxes. Raising corporate tax rates simply gives companies a bigger incentive to engage in whatever creative accounting methods are needed to keep those reported profits low.
Please explain to me how a corporate tax is passed on to a company’s customers.
Companies pay many taxes that are built into their cost of doing business and passed on to their customers, but a corporate tax isn’t one of them.
—
Where does a company obtain its money for operation if not from customers?
So, if you want to tax a corporation that does not owe any tax, in effect you would have to impose some after the fact tax based on something - revenue, assets, employees, locations, the color of the logo, or some other definable measurement and then force the corporation to make a payment to the government.
Then do you make this new minimum tax eligible for NOL rollovers; is it an allowable expense for various state returns; does an LLC pay the tax and an LLP not pay the tax; how about other pass-through corporate entities such as Subchapter S?
If any legislation ever passes, the bill would have to be longer than Obamacare, and probably require specific certifications for people who prepare the returns. Can't wait to see the Turbo Tax version of this, or even a video of Rachel Maddow or Stephen Colbert explaining it to the masses.
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