A group of 136 countries set a minimum global tax rate of 15% for big corporations

by Disillusioned JW 19 Replies latest social current

  • Anony Mous
    Anony Mous

    @Simon: the big corporations do pay massive amounts of taxes for income, employment, social security and property taxes.

    The notion that Amazon isn’t paying any taxes is a completely false narrative. They obviously will use whatever tax rules are in place to move money around, and no tax rule can change that, because those rules must exist for there to be a functioning economy.

    And the more taxes are levied the less taxes are going to get paid. In Europe even small businesses <$20M revenue invest in accountants to avoid the heaps of taxes, because it can save them a few million, which isn’t a practice you see in the US until you get to about $200+M in revenue because it just isn’t worth it.

    France levied a wealth tax and revenue plummeted so badly they went into a depression, the Obama era tax increases, once they came fully into effect (off course, by then Obama was almost out of office), total revenues stayed roughly the same, revenue from corporations dropped while the revenue from payroll and individuals increased enormously. So raise taxes just means people move money out of your country. Nowadays it’s not even a country, cryptocurrency allows you to extract money and it will be forever untraceable.

  • Diogenesister
    Diogenesister

    The thing that you're all missing is that you are America.Noone but no company wants to be locked out of America. That's where your power lay. I'm glad.

    Even if the data dumps show there's myriad ways of avoiding the law, you've got to start somewhere.

    As to pensions, I don't see your point Dubstep . No one's talking about cutting their massive profits. Just paying a little tax (which won't touch pensions). And it will be a little. But it's better than nothing....Which is precisely what they pay now.

    social security and property taxes -

    don't know about the states but employers get tax breaks in UK and property taxes a drop in the ocean for businesses like Facebook & Google etc

  • Anony Mous
    Anony Mous

    @diogenesister: taxes reduce profits by the amount taxed, thus they reduce the share that goes to your pension funds and shareholders and instead it goes into the black hole of government.

    You can see that these taxes aren’t used to reduce debt or to increase revenue for businesses across the board, government spending is wasteful and a drain on the economy. Eventually they will find that it still isn’t enough and raise taxes even more.

    Name a government program that is self funded or profitable. There is none. Social security has a negative interest rate when accounting for inflation (-3%) compared to private pension funds (+15%) and socialized healthcare such as ObamaCare, or NHS in the UK created a system where there are now more administrators than doctors. For every doctor there are 2 administrators and 1 nurse that simply do paperwork,

  • FedUpJW
    FedUpJW

    Found this pretty good example of how taxes work.

    Here Is How It Looks For Everyone Who Thinks The “Rich” Must Pay More

    Suppose that every day ten men go out for beer, and the bill for all ten comes to $100.00. If they were to pay their bill the way we pay our taxes it would look something like this:

    The first four men (the poorest) would pay nothing.

    The fifth man would pay $1.00.

    The sixth man would pay $3.00

    The seventh man would pay $7.00.

    The eighth man would pay $12.00.

    The ninth man would pay $18.00.

    The tenth man (the richest) would pay $59.00.

    So that is what they decided to do. The ten men drank in the bar every day and all seemed quite happy with their arrangement; that is until one day when the bar owner threw them a curve-ball.

    “Since you all are such good customers,” he said, “I am going to reduce the cost of your daily beer by $20.00.” The drinks for the ten men would now only be $80.00.

    The group still wanted to pay for their beer the same way we pay taxes. So the first four men (the poorest) were unaffected. They would still drink beer for free. But, what about the other six men? The ones actually PAYING for the beer they all drank? How could they divide the $20.00 windfall so each of the men would get his fair share? They realized that dividing $20.00 six ways was $3.33. But if they were to subtract that amount from everybody's share, then the fifth and sixth man would end up getting paid to drink beer!

    So the bar owner suggested that it would be the most fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and proceeded to work out the amounts he suggested each man should pay as follows:

    The first four (the poorest) would still drink for free.

    The fifth man though, now like the first four would pay nothing. (100% savings)

    The sixth man would now pay $2.00 instead of $3.00 (33 1/3 % savings)

    The seventh man would now pay $5.00 instead of $7.00 (28 1/2% savings)

    The eighth man would now pay $9.00 instead of $12.00 (25% savings)

    The ninth man would now pay $14.00 instead of $18.00 (22% savings)

    The tenth man would now pay $50.00 instead of $59.00 (15% savings)

    Each of the six men were better off than before, and the first four continued to drink for free. But once outside the men began to compare their savings.

    “I only got a dollar out of the $20.00 savings,” declared the sixth man. Pointing to the tenth man he said, “But he got $9.00!”

    “Hey, that's right,” exclaimed the fifth man. “I only saved a dollar too. That's unfair that he got nine times more benefit than I did!”

    “That's true,” shouted the seventh man, “Why should he get back $9.00 when I only got back $2.00? The rich get ALL the breaks!”

    “Wait just a minute,” screamed the first four men in unison, “We didn't get back anything at all. This system exploits the poor!”

    So the nine men surrounded the tenth man and beat him up.

    The next night the tenth man did not show up for drinks, naturally. So the nine men sat down and drank their beers without the tenth man. But when the time came to pay the bill they discovered something very important. They didn't even between all nine of them have enough money to even pay one-half of the bill.

    And that is basically how the tax system works. The people who already pay the highest taxes will naturally get the most benefit from any tax reduction. Tax them too much, attack them for being wealthy, and they just might not show up any more. In fact they may just start drinking elsewhere where the atmosphere is more friendly.

    David R. Kamerchen, PhD.

    Professor of Economics

    For those who understand, no explanation is needed.

    For those who do not understand, no explanation is possible.

  • sloppyjoe2
    sloppyjoe2

    Why do we act like Taxing big corporations and the rich are the fix to our economic problems? We create money out of thin air all of the time. We have a debt ceiling fight so that the government can create more money out of thin air when it reaches the limit. We raise the debt ceiling because the government will never try to pay down the debt. Why pay taxes at all. We should just keep creating money out of thin air to pay for everything until the whole System fails since that’s where we are headed anyway.

  • hoser
    hoser

    Sloppyjoe2

    The system you describe would punish the poor and reward the rich. If you drop or eliminate taxes and rely solely on the creation of more fiat currency you create a higher inflation rate(deflation of currency). This rewards the asset holders as their land, houses, gold are worth more currency but the wage earner with no real assets sees the purchasing power of his paycheck go down. We are seeing this happening in our economy right now.

  • Simon
    Simon
    We should just keep creating money out of thin air to pay for everything until the whole System fails since that’s where we are headed anyway.

    Exactly. If there are no consequences to their money printing, as they claim, then please print my tax money and use that.

    FedUpJW: that is a BRILLIANT analogy to how taxation currently works, except it misses the money that is handed to those who don't pay anything into the system.

    Of course, any tax cuts shouldn't benefit them - why should it? But then the howls of "unfair, unfair!" will begin.

    Never once does anyone in government suggest that they could spend less.

  • sloppyjoe2
    sloppyjoe2

    @hoser

    That was more tongue in cheek than anything. I’ve been yelling to people around me that we are going to cause inflation by our Covid response in the US while they were so happy to get a stimulus check. No one cares then. It’s happening now and will continue to get worse. We have zero interest in eliminating our government debt because no one wants the austerity measures to do it. A long slow decline for all fiat currency.

  • MeanMrMustard
    MeanMrMustard
    A long slow decline for all fiat currency.

    Don't forget the artificially low interest rates - there's a bunch of bubbles brewing. They pop quickly.

  • hoser
    hoser

    Sloppyjoe2

    Covid relief money is a two edged sword. Not only does it inflate the money supply creating price inflation but in addition causes potential employees to stay at home creating shortages of goods causing more inflation.

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