You obviously have not read the details of what was agreed. The idea is that a 15 percent tax would exist in all the major countries so there is no low tax country like Ireland that big corporations can put all their earnings through. If there is no low tax area then it will solve the problem.
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Big Tech Companies to Be Hit by 'Historic' International Tax Agreement
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It won't have any effects on R&D for Apple. They are doing a lot with R&D now and they can't even spend the existing cash they have -- they literally have hundreds of billions in cash they're sitting on and nothing to spend on.
It's possible they can some day make some major moves (buy out car companies, media companies, etc) but they already have the cash for those moves and they're not making them.
So as a practical matter, raising taxes on Apple's future profits isn't going to be a difference in their operations.
As far as price increases go, that's not automatic either. A price increase further, especially if its out of step with competitors, will result in lower sales (people will either opt to keep their units longer, switch to competitors, or some combination of factors).
I am not in favor of raising taxes on businesses, especially small to mid size businesses that compete in a very different economy than Big Tech. But for those Big Tech companies (Google, Apple, Facebook, Twitter, etc) who often shove left wing politics (much of which involves taxing anyone successful) down everyone's throat, I say let them reap what they sow.
By definition. If you don't pay what taxes you owe, you're a tax cheat. Even if you're a corporation.
I’m not talking about only the US. I’m sure all major countries are dealing with the tax avoidance issue, hence why the G7 and G20 are talking about it in the first place. And this isn’t just about Apple, I’m sure quite a wide range of multinationals are using the existing system to get around what most governments had intended.
More money in our allies coffers is a good thing as well. I believe the last POTUS complained about NATO spending by our allies. Perhaps some of the extra money could be used in that regard.
Correct. And there are ways to legally pay less taxes than the maximum owed for a particular tax bracket or corporate income tax rate.
This is what you said: "Meanwhile the rest of us have to make up the difference to pay for essential infrastructure and other services. Infrastructure these giant companies greatly benefit from by shipping unimaginable numbers of items to make their profits."
I was wondering who the rest of us were and was making a specific point that what Apples' offshore taxes. Apple, I believe, already repatriated billions of dollars virtually tax free. That will have no affect on us in the US was my point.
Yeah, in most ways I'm pretty favorable towards big businesses acting within the free market (e.g. Apple booting Epic) but not when they're altering the very laws in their favor, or at least abusing existing parts of the tax system that others can't. I don't know what their lobbyists do but do not feel guilty assuming the worst when they're being so secretive.
They have pretty much maxed out prices already,people won’t buy as much if they jack up their prices further.
I think the 15% is just a minimum, therefore, there will still be a lot of countries with higher taxes, higher than just a 15%. So big companies will still chose to pay the taxes on those countries with just a 15%.
But of course I can be wrong, I don’t know about european laws and my studies aren’t on that field. So don’t get mad if I’m just mistaken, we’re here to politely talk and learn from each other, that’s the spirit of a forum.
False.
Apple prices their phones to maximize profit as it is. If they could raise prices by 15% and generate more profit, they already would, regardless of how that profit is taxed.
Your scenario requires that Apple is presently under-pricing their devices.
Did you miss where I said I wasn’t just talking about Apple? Do you think multinationals don’t screw the US out of tax dollars too?
The world appears to be moving towards the left ideology with more taxes. Tax and regulation stifle innovation and progression of the human race. Any new tax is ultimately paid by purchasing consumers with the cost passed on and the transition of manufacturing away from developed western countries in an attempt to reduce production expenses. I have witnessed the waste of tax revenue in many areas of Australian society. The most recent ironic and somewhat comical one is a temporary speed camera placement in a location where it is not possible to speed due to the amount of traffic. 300 metres after it the traffic starts to slow to a stop as the two lanes merge to one. About 400 metres further along a recent sign erection with two (not one) flashing lights advise that there is traffic congestion in progress. I pay a 42.7% per litre petrol excise each time I purchase fuel; yearly car registration of $736.45; 10% GST each time I buy a car, accessories, tyres, parts and service labour; 19% income tax margin if I am lucky of which some is apparently allocated to the federal road funding; $30 per annum public transport levy in my rates. I do not incur / pay traffic fines. With all these road taxes I would expect evolving road infrastructure not superfluous road signs (there's more than one en route) telling me the bl00dy obvious.
The US would also benefit from the changes proposed. Not only do large corporations use places like Ireland to minimise their taxes in other European countries but they also use shady countries with zero tax. A lot of the profit is kept offshore and not repatriated to the US where it would be subjected to US taxes. If this could be made to work it would be a win/win.
www.cnbc.com
These charts show the highest and lowest corporate tax rates around the world
Finance ministers from the G-7 advanced nations agreed on Saturday to back a minimum global corporate tax rate of at least 15%.
So many of these companies have astronomical EPS that profit is really not the name of the game so much as selling the growth story to investors desperate for yeild in a fundamentally deflationary modern economy.
Um, this is talking about international taxes, not domestic corporate taxes. The tax laws for corporations would have to be changed in the US…you realize that?
For the commenters: how many of you just hate and envy the wealthy and that's why you're overjoyed about this?
If you look at the way the government spends your tax money, and it doesn't really matter where you live, you'll find you're not getting what you're paying for, or old taxes that were supposed to be "temporary" are never removed, or the money isn't being used efficiently...etc.
Do you think that is because not enough people or companies are "paying their fair share" or do you think it's about maybe the way politicians manage your money?
If you think it's about the way your money is managed, surely you must know MORE money isn't going to fix the problem.
This brings me back around to my initial question----most people realize, I think intuitively to some degree, their taxes are being mismanaged. If so, the anger should be at the politicians and not the wealthy. It's not, because so many just get excited at the thought of "soaking the rich."
If you look at the way the government spends your tax money, and it doesn't really matter where you live, you'll find you're not getting what you're paying for, or old taxes that were supposed to be "temporary" are never removed, or the money isn't being used efficiently...etc.
Do you think that is because not enough people or companies are "paying their fair share" or do you think it's about maybe the way politicians manage your money?
If you think it's about the way your money is managed, surely you must know MORE money isn't going to fix the problem.
This brings me back around to my initial question----most people realize, I think intuitively to some degree, their taxes are being mismanaged. If so, the anger should be at the politicians and not the wealthy. It's not, because so many just get excited at the thought of "soaking the rich."
This is a good step, I have to pay my share, they should pay theirs.
What would be even better would be to see some type of stewardship laws for some accountability placed on these politicians. Because let's face it, give them all $100 billion each in tax revenue, will they use those extra funds properly? None of them seem to balance their countries books, which gets all of us in trouble in the long run.
What would be even better would be to see some type of stewardship laws for some accountability placed on these politicians. Because let's face it, give them all $100 billion each in tax revenue, will they use those extra funds properly? None of them seem to balance their countries books, which gets all of us in trouble in the long run.
Tax laws in all countries involved would have to be changed. That’s kind of the point.
“We will get some revenue by shrinking the use of tax havens, especially for intangibles, and we will get the benefit of multinationals locating any start-ups in the U.S.”
Biden set for G-7 boost in bid for all nations to impose minimum global corporate tax
President Biden’s call for a global minimum tax on corporate profits is expected to be supported by finance ministers from Group of Seven nations, when they meet in London on Friday.
www.washingtonpost.com
I’m not sure why you’re singling out the U.S. and also pretending it won’t have any benefit.
Or how about we direct the anger at both the wealthy and the politicians.
Study: Politicians listen to rich people, not you
Vox is a general interest news site for the 21st century. Its mission: to help everyone understand our complicated world, so that we can all help shape it. In text, video and audio, our reporters explain politics, policy, world affairs, technology, culture, science, the climate crisis, money...
www.vox.com
This is probably the best outcome for Apple that it could reasonably have hoped for - the agreed minimum corporation tax level is low, it's just 2.5% above Ireland's current level so I can't see Apple moving its Irish base for a 2.5% saving. It's small enough that it's basically a rounding error in terms of profits, particularly once deductions are factored in.
The additional tax being paid in countries where sales are made seems like a win too. That type of tax was inevitable - France and the UK were leading the way but it was at a point where every country was finding tax systems designed for bricks and mortar stores simply weren't fit for purpose. There's no rational basis for a country to tax a high street store more than Amazon. With an agreed approach it means that it will be harder for local politicians to raise taxes above the internationally agreed level, which is also pretty low.
This also makes Apple a contributor to government coffers, which carries some indirect benefits. Maybe the European Commission will be nicer to Apple on the competition law investigations if it's doing its part by paying taxes to fund public services?
The additional tax being paid in countries where sales are made seems like a win too. That type of tax was inevitable - France and the UK were leading the way but it was at a point where every country was finding tax systems designed for bricks and mortar stores simply weren't fit for purpose. There's no rational basis for a country to tax a high street store more than Amazon. With an agreed approach it means that it will be harder for local politicians to raise taxes above the internationally agreed level, which is also pretty low.
This also makes Apple a contributor to government coffers, which carries some indirect benefits. Maybe the European Commission will be nicer to Apple on the competition law investigations if it's doing its part by paying taxes to fund public services?
Given this and the EU's plan to unify tax across the Union, presumably Ireland's ability to set corporation tax at a very low rate can't last?
For me, this argument is separate from the debate about whether the rich should pay more. I want a system where everyone pays the same, so it's fair.
If you set up a business running a coffee shop, pay 15% corporation tax, and across the street from you an international coffee shop pays 0% tax because they've got creative bookkeepers, you wouldn't feel the situation was fair.
I know situations like this are currently legal. The big international coffee co. in my example isn't doing anything wrong; they are following the law. But I think the law should be changed to make this fairer, which it sounds like the G7 are doing.
Rather obviously, if you aren’t paying the maximum owed, then it’s not actually the maximum owed, is it.