Posted on 06/18/2022 11:04:09 AM PDT by Right Wing Vegan
On Friday, Hungary’s Finance Minister Mihaly Varga told his EU counterparts that his country could not support a corporate tax reform at this time, thereby blocking an agreement at the EU level. After Poland dropped its opposition to a minimum corporate tax of 15% on large multinationals, an EU agreement was expected on Friday, but Hungary emerged as a last-minute stumbling block, preventing a deal that required the support of all 27 EU nations. In a public session of the meeting, Varga informed finance ministers, “Hungary cannot support the passage of the global minimum tax guideline at this point.” He said, ” “The work isn’t finished yet. I believe we must continue our search for a solution.”
The EU talks were meant to turn into law a global reform of corporate taxation, which was agreed last October by nearly 140 countries. Le Maire said that all technical issues had been long solved, implying the stalemate was down to political concerns. Poland and Hungary have been at odds with the European Commission.
French Finance Minister Bruno Le Maire, who had made the tax deal a key goal of the six-month French presidency of the EU ending in two weeks, did not hide his disappointment but urged ministers to continue the work to strike a deal at a later stage. At the meeting, Poland’s finance minister Magdalena Rzeczkowska formally dropped its opposition to the deal.
Which has held up their receipt of COVID-19 recovery fund money over questions about their stance on the rule of law and other EU values. Earlier in June the Commission approved payments to Poland, whereas EU recovery funds for Hungary remain frozen. The overhaul set global minimum corporate tax of 15% on big multinationals and gave other countries a bigger share of the tax take on the earnings of big U.S. digital groups such as Apple Inc and Alphabet Inc’s Google.
The reform was originally intended to be applied in 2023, but its implementation has now been effectively pushed back to 2024. The Biden administration is also struggling to pass legislation that would implement the global minimum tax deal.
Assholes. This reeks of stuff like the time the OECD was bemoaning “harmful tax competition” as if governments are some kind of victims and were supposed to feel sorry for the effects freedom might have on those poor waifs. Bullshit.
Spit.
Hungary saves the day. I’m just a bit disappointed that Poland caved on the issue. A global minimum corporate tax would divide the world into three camps.
Camp 1: Nations that follow the rules. Example: USA
Camp 2: Nations that only pretend to follow the rules. Example: India
Camp 3: Nations that ignore the rules. Example: China
It’s just like with the “climate change” rules. Nations in the last two camps will gain a great advantage over the nations in the first camp.
I would add a group of individuals as Camp 4: Individuals within Camp 1 nations who invest in Camp 3 nations instead of their own nations.
Good post.
All of these regulations are de facto subsidies of China.
Western nations are insanely stupid.
Bless you Victor Orban.
He is saving our Country from being milked by the globalists wanting centralized gov’t to redistribute the taxing monies they would be confiscating to fund their pet projects and those in favor that they would dole primarily our money out to, in the form of bribes to get what they wanted politically. Or by subsidies to favored 3rd world nations to show their woke beneficence, at our expense of course.
I wonder if Hungary (Orban) has been consulting (behind the scenes) with President Trump about stopping this corrupt tax plan as it pushes back enactment until 2024 when hopefully and most likely a Republican would once again be elected President in the U.S. (in other words Trump; he and Orban are like-minded on many issues and very friendly).
Then Orban, and the leaders of Poland (who are being blackmailed by the EU by withholding funds from them unless they vote for this) would once again have an ally in the Oval Office. Biden’s advocacy for this taxation scheme is all you need to know as to why this boondoggle must not be passed.
I hope Orban can hold out; the EU will be pressuring him big-time and they can’t stand his conservative political beliefs. His country loves him though and will stand behind him.
Exactly right. I’m having a hard time coming up with one of our elected officials that has the guts of this man.
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