Taxes, Biden attacked by the web giants with offices in tax havens

by time news

The Administration of the President Joe Biden has proposed, through the Department of the Treasury, to its partners in the Organization for Economic Cooperation and Development (OECD) a global corporate tax of at least 15%, to its partners in theOECD, the Organization for Economic Cooperation and Development. However, the percentage is lower than the 21% that was thought would be proposed. 15% is considered a starting limit, beyond which “more ambitious” efforts can be undertaken. Furthermore, the rate can be “raised” to stop the race to the bottom of the past 30 years.

Eurogroup and Ecofin in Lisbon/ France e Germany believe that the American proposal to fix at 15%, instead of 21% as originally assumed, the minimum global tax on multinationals constitutes a turning point for quickly reaching an agreement in the OECD and G20. In succession, the French economy minister Bruno the Mayor and the German minister Olaf Scholz they indicated their full willingness to end the “game”. For the French minister, the American proposal “is a good compromise: the question is not the figure (in itself) but have a political agreement no later than the G20 meeting in Italy in July “. For the German colleague this is “the best opportunity to define a tax reform at a global level in order to counter the tax race to the bottom”. Basically to reduce unfair competition between companies and states.

The negotiations promoted by the United States with theOECD they are aimed at bringing about a harmonization of taxes between countries regarding the profits of large corporations. All with the aim of preventing them from escaping to tax havens like the Bahamas or Ireland. Many multinationals reside in Ireland, which pay a rate of 12.5%, while neighboring countries such as France and Germany are at 21%.

The ultimate goal is to increase the contribution of the tech giants in their respective countries. The first of the multimillionaires is targeted, that Jeff Bezos of Amazon who Joe Biden has repeatedly accused of having evaded tax obligations in his country thanks to the tax advantages of other countries.

Of course, Biden’s move is very worrying the “fiscally good” countries because they would not become more attractive. The Democrat’s government confirmed that a global “zero” corporate tax has sparked a race to the bottom in corporate rates, limiting countries’ ability to raise revenues to make the necessary investments. The OECD’s hope is to reach a global pre-agreement at the G20 financial summit on 9 and 10 July. The final agreement is expected to be drawn up at the end of October.

The proposal was strongly supported by Janet Yellen, the powerful US Treasury Secretary who, in this regard, has repeatedly said that “It is important to ensure that governments have stable tax systems that collect sufficient income and that all citizens share the government’s financial burden equally”.

Domestically Biden has proposed to raise the corporation tax from the current 21%, the daughter of Trump’s 2017 tax reform, to 28%, although more moderate Democrats are more in agreement in a percentage of 25%. With these higher revenues Biden wants to finance, in part, his mega project on infrastructure and above all to end what everyone considers an ethically immoral and financially wrong approach for all countries.

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