Global tax deal

OP
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mapping

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Good on the effort.

The realist in me however knows that there will still be loopholes or new ones created where people and companies will be able to legally get around things and not pay their fair share.
Yep , exactly what I thought
 

LostinSpace

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Global tax deal agreed , “ balance up the amount of tax paid by big tech giants “ this should have been nailed years ago imo https://www.bbc.co.uk/news/world-57368247
You think this is good? Standard corporate tax in the UK is 19%, yet multi £billion companies based in the US pay only 15%, how is that fair?

I think it's a fucking disgrace. Typical Tory, handing yet another unfair advantage to multi-national corporations. :mad:
 

Sepp Blatter

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Good on the effort.

The realist in me however knows that there will still be loopholes or new ones created where people and companies will be able to legally get around things and not pay their fair share.
Always the way - and, there is the other side of the coin. Offering lower corporate tax rates is one way that countries disadvantaged by geography or other negatives can lure foreign investment.

That's one of the reasons why some EU countries, including Ireland and Cyprus, are concerned about it. Are the wealthier countries once again going to cannibalise the periphery, and will there be unintended consequences such as downward pressure on wages and further austerity?

I'm not necessarily against it, btw, but how to square that circle is certainly a important consideration.
 

LostinSpace

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Always the way - and, there is the other side of the coin. Offering lower corporate tax rates is one way that countries disadvantaged by geography or other negatives can lure foreign investment.

That's one of the reasons why some EU countries, including Ireland and Cyprus, are concerned about it. Are the wealthier countries once again going to cannibalise the periphery, and will there be unintended consequences such as downward pressure on wages and further austerity?

I'm not necessarily against it, btw, but how to square that circle is certainly a important consideration.
Just thinking about the UK, I don't the know the tax rates in Greece, if the government reduced corporation tax across the board to 15% (which they won't), then we'd have a level playing field. As it is, we're engraining a tax advantage for the multi nationals (who are mostly US companies) into the system.
 

Sepp Blatter

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Just thinking about the UK, I don't the know the tax rates in Greece, if the government reduced corporation tax across the board to 15% (which they won't), then we'd have a level playing field. As it is, we're engraining a tax advantage for the multi nationals (who are mostly US companies) into the system.
Don't think I mentioned Greece. Mainly because it is largely irrelevant to us. We are not fiscally sovereign and have no say over such things. Brussels decides.

It's a global policy needing global views - we have to think much wider than national borders. Plus, I am an internationalist and worry about the effects of policies on ordinary folk elsewhere rather than becoming caught up in parochialism.

The problem arises if you take away the tax advantage for multinationals and give it to the more powerful countries and states (if you are within the US). Without the ability to offer lower taxes to companies, countries on the economic and geographic periphery, away from the markets, centres of power, and infrastructure find it hard to compete.

You either have less investment and fewer jobs, or you end up cutting wages to try to maintain a competitive edge - which lowers standards of living and risks starting up the brain drain again.

The devil is very much in the detail with this policy - we wouldn't want it to become exploitative.
 

LostinSpace

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Don't think I mentioned Greece. Mainly because it is largely irrelevant to us. We are not fiscally sovereign and have no say over such things. Brussels decides.

It's a global policy needing global views - we have to think much wider than national borders. Plus, I am an internationalist and worry about the effects of policies on ordinary folk elsewhere rather than becoming caught up in parochialism.

The problem arises if you take away the tax advantage for multinationals and give it to the more powerful countries and states (if you are within the US). Without the ability to offer lower taxes to companies, countries on the economic and geographic periphery, away from the markets, centres of power, and infrastructure find it hard to compete.

You either have less investment and fewer jobs, or you end up cutting wages to try to maintain a competitive edge - which lowers standards of living and risks starting up the brain drain again.

The devil is very much in the detail with this policy - we wouldn't want it to become exploitative.
That's the key, we don't know the detail yet.

If I ran UK business which runs on tight margins with say Amazon as my main competitor, I'd feel let down by Sunak. Just because it's better than previously doesn't make it right.

I actually agree with your second paragraph, but only if the government make it a level playing within our borders.
 

Sepp Blatter

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That's the key, we don't know the detail yet.

If I ran UK business which runs on tight margins with say Amazon as my main competitor, I'd feel let down by Sunak. Just because it's better than previously doesn't make it right.

I actually agree with your second paragraph, but only if the government make it a level playing within our borders.
As I said, I am more concerned about the global impacts with this one. I am sure that others will be happy to talk about Sunak.

Is it a good and fair policy, or is it a policy that sounds good and fair, in order to gain support by claiming to right an injustice, but ends up exploiting the weakest even further?

Cynical? Yes. But, such cynicism is more than justified with our present global economic system and politics.
 

LostinSpace

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As I said, I am more concerned about the global impacts with this one. I am sure that others will be happy to talk about Sunak.

Is it a good and fair policy, or is it a policy that sounds good and fair, in order to gain support by claiming to right an injustice, but ends up exploiting the weakest even further?

Cynical? Yes. But, such cynicism is more than justified with our present global economic system and politics.
You’re cynical, I’m sceptical. I understand your point but it feels like we were going to be executed but now they’re just amputating an arm so that’s OK! 🙂
 

Sepp Blatter

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You’re cynical, I’m sceptical. I understand your point but it feels like we were going to be executed but now they’re just amputating an arm so that’s OK! 🙂
Always cynical that large, powerful, wealthy countries are going to load things in their favour and use this to make sure they have a larger share.

Not like there hasn't been any precedent in the past few decades. Indeed, it has probably been the norm.
 
OP
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You think this is good? Standard corporate tax in the UK is 19%, yet multi £billion companies based in the US pay only 15%, how is that fair?

I think it's a fucking disgrace. Typical Tory, handing yet another unfair advantage to multi-national corporations. :mad:
Well it’s certainly a step in the right direction ! Some of these large companies are getting away with paying Virtually Nothing !!!!
 

raefil

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isnt the average corporation tax, worldwide, something like 21%?

Nice of them to help the Billionaire corporations pay less tax throughout the world.
 

LostinSpace

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isnt the average corporation tax, worldwide, something like 21%?

Nice of them to help the Billionaire corporations pay less tax throughout the world.
And our banks even less...
 

LostinSpace

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To be fair, EU countries are also pushing for these exclusions along with the UK.

Smoke and mirrors?
That's news to me! Could you post a link or two?

Tbh, though, the EU doing the same doesn't make it OK for us.

Reading between the lines, I'm wondering whether the whole thing is going to fall apart over the next two days..
 

Sepp Blatter

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That's news to me! Could you post a link or two?

Tbh, though, the EU doing the same doesn't make it OK for us.

Reading between the lines, I'm wondering whether the whole thing is going to fall apart over the next two days..
It's actually in the linked Guardian article, although I have read it elsewhere, including the Greek media.

The UK/EU want to punish US tech giants but exclude European financial services, while the US wants the reverse.

As I said above, I like the idea in principle, but feared that the stronger countries would simply use it for their own advantage. Self-interest instead of doing the right thing.

We will have to see how it plays out.
 

jakehake

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To be fair, EU countries are also pushing for these exclusions along with the UK.

Smoke and mirrors?

the smoke and mirrors is that the corporations will pay more tax but it's the consumer and the populations at large that ultimately fund the increased tax bill would be my guess through increased prices/fees depending on the products/services. Always the losers
 
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