US President Joe Biden's proposal to enact a global minimum tax of 15 percent has run into opposition from Ireland JIM WATSON AFP
France 24: Biden global tax proposal faces setback after Ireland objects
US President Joe Biden's push to get major economies to agree on a 15 percent minimum tax rate for multinational corporations has hit turbulence after Ireland's finance minister expressed "significant reservations" about the plan.
The objection from Dublin's finance minister Paschal Donohoe on Tuesday carries weight because Ireland hosts an outsized number of technology and pharmaceutical firms that were attracted to the country for its lower tax rate.
Read more ....
Update: Ireland rejects President Biden's global corporate tax plans and will keep 12.5% rate, finance minister tells Sky News (SKY News)
WNU Editor: Ireland is not the only country objecting to President Biden's global tax proposals .... Europe Balks at Biden’s Tax Plan (WSJ).
As to what the proper tax rate is, this is something that reasonable people can and will disagree on. Based upon my considered observations and much experience in this as a Certified Public Accountant, the proper tax rate is probably around 10 to 11% for individuals. It's probably going to be lower for corporations as the "profits" are eventually going to end up in the hands of the shareholders anyway or they are going to be invested more personnel or property, plant, and equipment which is necessary to keep the companies competitive. As such, I would estimate the proper rate at 5% for the maximum for large corporations.
ReplyDeleteThe US rate is WAY TO HIGH!! Fortunately many of the large conglomerates have found "loopholes" to get around much of this. While this certainly good for income tax accountants and other financial personnel as it definitely keeps us busy, it is not so good for the proper allocation of resources as for the maximum benefit money that goes toward finding loopholes to keep the government from robbing us blind could be much better spent on things like expansion as well as research and development.
Ireland and other countries are right to resist this. The constant meddling in things they don't understand by our leadership class often knows no bounds. When we meddle in things we don't understand, we often make things worse or we create problems where none really existed.
Each nation needs to decide what works well for them as far as the proper tax rate and other matters. They are all unique. To try and impose any type of one size fits all global tax or structure is pretty much certain to fail. I'm not sure I would say it "reeks of desperation" but suggesting it does show a fundamental lack of understanding of even the most basic economic principles and at some point the leadership class will need to admit that things aren't going so well for them.
Under president Trump we were beginning to right the proverbial ship. At some point, the leadership class will need to bring him or someone like him back to fix the messes they've made whether they like this or not.
ReplyDeleteI'm not terribly against the idea except for one thing; who's going to spend it where, and how? Being that the bottom line is the consumer I doubt this will be acceptable.
Unless, of course, I'm in charge of where and how such funds will used.
Good points!! I'm pretty how such funds are spent would eventually end up being controlled by China, Russia, and their allies. Furthermore these funds would end up being spent in ways that run contrary to US interests.
Delete