If not, here's a suitable shovel for that bigger hole you're about to dig for yourself:
Posted on 07/09/2022 7:48:00 AM PDT by Right Wing Vegan
The U.S. Treasury on Friday said it was moving to terminate a 1979 tax treaty with Hungary in the wake of Budapest's decision to block the European Union's implementation of a new, 15% global minimum tax.
A Treasury spokesperson said that since Hungary lowered its corporate tax rate to 9% - less than half the 21% U.S. rate - the tax treaty unilaterally benefits Hungary.
"The benefits are no longer reciprocal - with a significant loss of potential revenues to the United States and little in return for U.S. business and investment in Hungary."
The timing of the termination following years of U.S. concerns about the treaty suggests that Treasury is using it to try to pressure Hungarian Prime Minister Viktor Orban to agree to implement the 15% global minimum tax agreed by nearly 140 countries.
Affirming the Hungarian government's position, Foreign Minister Peter Szijjarto said that the global minimum tax would ruin Europe's competitiveness and endanger jobs in Hungary.
"Based on all this - no matter how hard the pressure is on us - we obviously do not support the introduction of the global minimum tax in Europe," he said in a Facebook post on Saturday. "And we continue our professional consultations on tax issues with our Republican friends."
(Excerpt) Read more at reuters.com ...
Time to move back to grandpa’s home village
Our Communist DC Government wants a ‘global tax?’ Is the for Climate Change? WTH?
Eastern Europe countries are acting smarter by reducing corporate taxes. They have lived under communist system and know very well the difference between socialism/communism versus benefits of capitalism. Corporation do not pay taxes. They simply pass them on to consumers or buyers of their services.
Isn’t the obvious then that other countries match Hungary’s tax rate?
But heavens, no! That means the NEVER greedy governments would have to do with less. Remember, only corporations and individuals and be “greedy.”
This global minimum tax is an imminent disaster. The only winners will be the worldwide controlling elites.
I wish people would stop posting this nonsense on FR. Corporations certainly do pass along taxes related to their operations — e.g., payroll taxes, sales taxes on materials, property taxes on their facilities, etc.
But the “corporate taxes” referenced here are taxes on corporate PROFITS … which are computed after all the company’s revenues and costs are already established. How the heck does a corporation like Ford pass along this tax to its customers? Does it send a separate bill to everyone who bought a new Ford the prior year?
I wasn’t aware a regulatory body had the power to break an international treaty.
This is BIDEN doing this, breaking a long standing and congressional approved treaty to serve a nationalist purpose.
I eagerly await the handwringing and pearl clutching from our main stream media about this blatant disregard for world order and trying to destroy the US to support Russian goals (yeah, who’m I kidding)
Hungary’s problem is that it refuses to lie like other countries do.
For example, both China and India have signed on to this tax scheme. But who in their right mind believes that they will play by the rules?
Taxes they collect could be quietly rebated back to the companies. Or maybe the right tax won’t even be collected in the first place. Just record that it was. Who’s gonna check?
This regulation will do nothing more than make honest first-world countries even less competitive than they already are.
I feel the sentiment, and only wish that our grandfather's villages can come back to the US and clean house. We who remain of our heritages can only do the best we can here against these degenerate commy traitor NWO hordes.
grandfathers’ , that is.
That’s one of the variables you use when setting pricing.
How ya feel about that, Duhmerica?
1979,
That was till the communist era.
So they terminated some communist era treaty. Big deal!
They don't have the authority to do it, but they do seem to have the power to do it.
Corp most certainly do pay taxes
Government, whether here or there, always want more. They want more control and more of the productive sector’s money. While government actually serves small purposes, it is by its very nature insatiable, and therefore should be kept as small as possible. Government is the least efficient and productive user of resources ever conceived by man and should have to get by with as little as possible. If you have a malignant tumor do you wish it to grow?
—> But the “corporate taxes” referenced here are taxes on corporate PROFITS … which are computed after all the company’s revenues and costs are already established. How the heck does a corporation like Ford pass along this tax to its customers? Does it send a separate bill to everyone who bought a new Ford the prior year?
It is simple to understand - especially if you’ve wrestled through this in the real world…
In your illustration, Ford wold evaluate the result of an increase in corporate taxes.
Businesses look at the entire cost of doing business, including the cost of taxes of all kinds.
If the business is unable to be profitable enough to make the risks of business acceptable (going forward), it has choices:
1. Raise prices on goods or services - happening now with many categories
2. Cut costs through innovation, reducing fixed costs like payroll, shrinkflation (smaller packages at same price, etc.
3. Examine tax code it exists under currently for creative ways to save on taxes
4. Change tax jurisdictions to a more favorable one, or combine multiple jurisdictions (like the famous Dutch/Irish sandwich to lower total taxation.
5. Change to a more friendly regulatory environment that imposes lower costs of compliance.
This covers the main approaches and is sufficient for this thread.
So you are correct that there is not a way to change the tax cost from last year.
But that misses that a responsible business will seek to achieve a better level of profit going forward.
Socialist/marxist states and institutions seek to steal greater amounts of taxation by:
Insisting every state have a minimum corporate tax so the advantage of moving to another jurisdiction is reduced dramatically.
Supporting unions that impost rules on workforce reduction
Price controls
Etc.
Why are they doing these things??
So they can steadily and certainly raise taxation under the guise of taxing big companies.
But be assured businesses can not accept total costs beyond a certain level.
These surplus costs will be passed on to the end user - consumer - or the business will cease to operate.
Best
PS - Bonus: there is a push in the capital markets for ESG investing.
Instead of a fiduciary mandate based on profit, they impose a some agenda. Any company that doesn’t meet the wood agenda is effectively denied capital and access to banking, etc. it is a way to impose the WEF Marxist agenda under the guise of professionalism… and is evil.
It is in effect, a social credit score, similar to how communist China works.
“ The ESG strategy means investing in companies that score highly on environmental and societal responsibility scales as determined by third-party, independent companies and research groups.”
- Forbes
Wood=woke
Autocorrect
If not, here's a suitable shovel for that bigger hole you're about to dig for yourself:
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