Janet Yellen to call for unified global corporate tax rate

[aesma]

How to unify corporate tax globally. Each country has an economic structure, a different economic environment, the application of corporate tax affects other issues in the overall national policy. Not to mention that each country has different geographical locations, so the tax rates between countries must be different to ensure that countries have competition in attracting businesses.

First of all a country should have companies that serve the population and other companies of that country. International competition comes later and shouldn't be a major part of any economy. If a country lives from attracting foreign companies, that country is a freeloader, making tax revenue go down everywhere. To the benefit of very few people.

[bryant.coleman]

First of all a country should have companies that serve the population and other companies of that country. International competition comes later and shouldn't be a major part of any economy. If a country lives from attracting foreign companies, that country is a freeloader, making tax revenue go down everywhere. To the benefit of very few people.

LOL.. this is one of the funniest posts I ever saw in the Economics section of this forum. Dude.. this is a free world. People and companies are free to move anywhere of their liking. There are countries in the world where there is no corporate tax or income tax. I am talking about countries such as Bahrain, Qatar and Kuwait. And countries such as Qatar are among the richest countries in the world, and they don't really need to attract anyone. Once again, crying about your tax revenue going down is not going to help. On one hand, you elect socialists such as Kamala Harris and Janet Yellen to power and then you complain that the companies are moving out.

[hulla]

President Trump makes a wonderful decision by reducing the corporate tax to 21% and in the season when the pandemic has caused alot of damage there's a need for an increase of corporate tax but the 28% seems too big and I think 25% will still be fair.

I don't understand the rules and regulations the G20 nation use to operate but countries like Puerto Rico will suffer if they comply with the plan to increase global corporate tax and I don't think it will fair to them if they are forced to comply.

[Mauser]

President Trump makes a wonderful decision by reducing the corporate tax to 21% and in the season when the pandemic has caused alot of damage there's a need for an increase of corporate tax but the 28% seems too big and I think 25% will still be fair.

I don't understand the rules and regulations the G20 nation use to operate but countries like Puerto Rico will suffer if they comply with the plan to increase global corporate tax and I don't think it will fair to them if they are forced to comply.

I don't think it's possible to find a solution for all the G20, even if 18 or 19 countries agree then there are a lot of advantages for one country to disagree. Money doesn't know borders and will always relocate to the most attractive countries. There are so many loopholes in tax laws which is why the big tax consultantancies are making so much money. In my opinion the best approach would be to simplify the tax laws tremendously. But this seems utopic at the moment.

[bryant.coleman]

I don't think it's possible to find a solution for all the G20, even if 18 or 19 countries agree then there are a lot of advantages for one country to disagree. Money doesn't know borders and will always relocate to the most attractive countries. There are so many loopholes in tax laws which is why the big tax consultantancies are making so much money. In my opinion the best approach would be to simplify the tax laws tremendously. But this seems utopic at the moment.

Even if all the G20 nations agree on a uniform tax rate, it will not resolve the issue. Currently there are 193 nations that have United Nations membership. On top of this, we have dozens of unrecognized countries and territories which have their own tax structure. The US have no right to decide on the tax structure of foreign countries. If they are unable to compete with the other countries, then they should cancel their membership to the World Trade Organization (WTO) and ban the imports of foreign produce to their territory. The demand that other countries should adjust their tax structure with the US is laughable at the best. And let's not forget the fact that the demand came after US increased the tax rate from 21% to 28%. Previously they had no issue with this. Yellen is wrong if she thinks that the other countries will dance to her whims and fancies.

[aesma]

First of all a country should have companies that serve the population and other companies of that country. International competition comes later and shouldn't be a major part of any economy. If a country lives from attracting foreign companies, that country is a freeloader, making tax revenue go down everywhere. To the benefit of very few people.

LOL.. this is one of the funniest posts I ever saw in the Economics section of this forum. Dude.. this is a free world. People and companies are free to move anywhere of their liking. There are countries in the world where there is no corporate tax or income tax. I am talking about countries such as Bahrain, Qatar and Kuwait. And countries such as Qatar are among the richest countries in the world, and they don't really need to attract anyone. Once again, crying about your tax revenue going down is not going to help. On one hand, you elect socialists such as Kamala Harris and Janet Yellen to power and then you complain that the companies are moving out.

What do Bahrain, Qatar or Kuwait bring to the world ? Do they make Nobel peace prize scientists ? Do they advance peace ? Do they even treat people living in these countries well ?

These countries can't exist and can't function without real countries doing the real work. Hence, freeloaders.

Mauser : of course money knows borders. If things escalate, money can stop flowing. It didn't flow that well until the 80's. Plenty of countries today have capital controls, ban foreign ownership of companies and real estate, etc.

[bryant.coleman]

What do Bahrain, Qatar or Kuwait bring to the world ? Do they make Nobel peace prize scientists ? Do they advance peace ? Do they even treat people living in these countries well ?

These countries can't exist and can't function without real countries doing the real work. Hence, freeloaders.

Dude, you have no idea what you are talking about. If that is the case, then let me ask you what do the United States bring to the world, apart from invading and bombing third world nations? Since they spent $1 trillion to bomb Afghanistan, $2 trillion plus to bomb Iraq, and an unknown amount to bomb Syria, what is the guarantee that this increased tax revenue won't be used to bomb some third world nation? And since when the Nobel Peace Prize (which was given to politicians like Barack Obama and Al Gore) became a measurement to productive contribution? The question is not about Nobel Peace Prize, but about the corporate tax.

[jaberwock]

You guys have to remember, these are people who are in for regulations and they like it, that is why they are trying to put regulations on crypto, but there is no ban, there will never be a ban, look at Coinbase, they had their IPO just recently, you think there could be a ban on that?

Bitcoin will always be free and legal in USA, there will be stricter laws to purchase or use it that is for sure, but KYC is for that exact reason as well, which means at the very worst case Janet will do something that will add one more picture to KYC, or another document, like maybe required social security number or something, in order to prevent it, and everyone who uses coinbase (or similar places) to be sharing their information to a super high level, and all of their movements will be tracked by coinbase and notified to SEC or some place I suppose (could be IRS, or different) and that is understandable because they want the same for everything, so not a shock they would want that for BTC.

[Sithara007]

You guys have to remember, these are people who are in for regulations and they like it, that is why they are trying to put regulations on crypto, but there is no ban, there will never be a ban, look at Coinbase, they had their IPO just recently, you think there could be a ban on that?

To be fair, Janet Yellen sounds too grumpy and frustrated. Ever since taking office, she has made two statements which make no sense. First one related to "controlling" cryptocurrency and the second one demanding a global minimum level of corporate tax. Both the suggestions can't be implemented in reality. Former president Trump sounded insane at times, and was widely ridiculed by the media. But he kept these lunatic people out of office for four years and I need to give him credit for that.

[hulla]

President Trump makes a wonderful decision by reducing the corporate tax to 21% and in the season when the pandemic has caused alot of damage there's a need for an increase of corporate tax but the 28% seems too big and I think 25% will still be fair.

I don't understand the rules and regulations the G20 nation use to operate but countries like Puerto Rico will suffer if they comply with the plan to increase global corporate tax and I don't think it will fair to them if they are forced to comply.

I don't think it's possible to find a solution for all the G20, even if 18 or 19 countries agree then there are a lot of advantages for one country to disagree. Money doesn't know borders and will always relocate to the most attractive countries. There are so many loopholes in tax laws which is why the big tax consultantancies are making so much money. In my opinion the best approach would be to simplify the tax laws tremendously. But this seems utopic at the moment.

It every possible for a number one country to find a solution for all the G20 and it will hard for any the countries in the G20 to disagree if 18-19 have already agreed to the new bill. As you said the best opinion is to simplify the tax law which I think is what they will all later arranged on.

[aesma]

What Yellen is mainly concerned about is that US companies pay their fair share of tax. If some countries don't implement the minimum corporate tax, it's not a problem, the US can declare that no US company has the right to have a presence in such a country.

[Sithara007]

What Yellen is mainly concerned about is that US companies pay their fair share of tax. If some countries don't implement the minimum corporate tax, it's not a problem, the US can declare that no US company has the right to have a presence in such a country.

LOL.. I don't think that the American government would be stupid enough to take such a step. For many of the American companies, a large part of the revenue comes from global markets. If they are not allowed in the global markets, then Chinese or Japanese companies will fill the vacuum. No one is having any issue with the American government taxing American companies. The problem arises when the American government want to dictate how foreign governments tax foreign companies.

[oHnK]

What Yellen is mainly concerned about is that US companies pay their fair share of tax. If some countries don't implement the minimum corporate tax, it's not a problem, the US can declare that no US company has the right to have a presence in such a country.

LOL.. I don't think that the American government would be stupid enough to take such a step. For many of the American companies, a large part of the revenue comes from global markets. If they are not allowed in the global markets, then Chinese or Japanese companies will fill the vacuum. No one is having any issue with the American government taxing American companies. The problem arises when the American government want to dictate how foreign governments tax foreign companies.

Indeed, the risk is very clear if the US is so strict in this tax policy, the risk is a warm opportunity for competing countries, especially China, which is indeed a trade rival for the US.  This should be very concerned about, because during Biden's leadership several policies focused directly on taxes.  The rich tax even the corporate tax.  This is a policy that has been stalled for a long time but has only just been executed.

[aesma]

Theses companies (Amazon, Google, Facebook, etc.) are already banned from China, so that wouldn't change much for them. There is Apple, but they can afford to pay the tax.

[Vishnu.Reang]

Theses companies (Amazon, Google, Facebook, etc.) are already banned from China, so that wouldn't change much for them. There is Apple, but they can afford to pay the tax.

Google and Facebook are banned in China, as the local competitors (Baidu and WeChat) have a complete monopoly. As far as I know, Amazon isn't blocked in China, but they geo-restricts users from that country. So here you are right. But China remains one of the largest markets for Apple (and one of the fastest growing markets as well). And it won't be fair to ask Apple to pay taxes in US, for their revenues in China. And let's not forget that most of the components for the manufacturing of iPhone, iPad.etc comes from the Chinese manufacturing units. 

[Obito]

What Yellen is mainly concerned about is that US companies pay their fair share of tax. If some countries don't implement the minimum corporate tax, it's not a problem, the US can declare that no US company has the right to have a presence in such a country.

That's impossible, a politician that isn't lobbied by corporations so they can continue to exploit the working class. I don't think that companies are going to like the idea of moving out of a country because of the tax laws in place, getting out of that country is going to hurt them real bad.

[Sithara007]

The latest proposal from Biden is to rise the long-term capital gains tax and make it on par with the income tax. And someone has already pointed out that if this stupid plan is implemented, then in some of the cities those who fall in the top-slab will be paying close to 60% of their capital gains as tax.

https://twitter.com/JaredWalczak/status/1385315212081963010

Now what is going to be the next demand? I guess Yellen will ask for a unified global capital gains tax as well? In most of the sane countries, capital gains tax are in the 10%-20% range. Here in India, it ranges from 0% to 10%. I know a lot of people want to make capital gains tax on par with income tax. IMO, it is never practical, because if the government want to do that then they should reimburse the capital losses (the option of carrying forward the losses is useless).  

[Xinarae*]

The reason for banning corporate rates is that it is difficult to attract investment if corporate rates are high. Entrepreneurs in this country have to pay a large part of their income as tax however the rate at which middle-income countries have reduced corporate taxes over the past three decades has made it easier to do business but here corporate tax is used to increase revenue. So even though there is talk of reducing corporate taxes before the budget every year the national board of revenue backs down every time.

[Vishnu.Reang]

The reason for banning corporate rates is that it is difficult to attract investment if corporate rates are high. Entrepreneurs in this country have to pay a large part of their income as tax however the rate at which middle-income countries have reduced corporate taxes over the past three decades has made it easier to do business but here corporate tax is used to increase revenue. So even though there is talk of reducing corporate taxes before the budget every year the national board of revenue backs down every time.

For the governments, it is a very difficult decision to make. Here in India, the corporate taxes used to be around 35%-40% a few years ago. After the right-wing government came to power, it was reduced to 25%. Obviously this resulted in a lot of companies shifting their manufacturing units from China to India and the creation of a large number of employment opportunities. But still, reducing corporate tax alone is not enough. Foreign investors claim that the issue of corruption/red-tape is much worse in India when compared to the situation in China.

[RealMalatesta]

What Yellen is mainly concerned about is that US companies pay their fair share of tax. If some countries don't implement the minimum corporate tax, it's not a problem, the US can declare that no US company has the right to have a presence in such a country.

That's impossible, a politician that isn't lobbied by corporations so they can continue to exploit the working class. I don't think that companies are going to like the idea of moving out of a country because of the tax laws in place, getting out of that country is going to hurt them real bad.

The thing is Janet Yallen is bought by companies as much as any politician, however Biden administration has provided time and time again the fact that they are moving a bit more further left, there is nothing else to do but to charge companies a bit more tax otherwise regular folk will not even have money to keep those companies alive anymore. You think amazon could continue operations perfectly making tens of billions of dollars forever?

If things are not looking good for regular folk that means they will stop buying stuff from Amazon as well, which means profits down for them, this is just an example for one company, it is true for all the companies in the nation. Politicians from both parties are still bought by companies, but the world can't continue to operate like this for a long time, it is just not possible and that is why things are moving with higher taxes nowadays.