U.S. proposes global minimum corporate tax rate of 15%, with an eye on something even higher

[SouthBayDem]

Source: CNBC

Corporations around the world should pay at least a 15% tax on their earnings, the Treasury Department said Thursday as part of its push for a global minimum for businesses.

The final rate could go even higher than that, according to a Treasury release that said the 15% minimum is a “floor and that discussions should continue to be ambitious and push that rate higher.”

U.S-based companies currently pay a 21% rate, a level that was slashed during the Trump administration. Previously, the top rate had been 35%.

Under a proposal from President Joe Biden, the tax rate would be lifted to 28%, part of a plan to raise levies on both companies and the highest earners.

Read more: https://www.cnbc.com/2021/05/20/us-proposes-global-minimum-corporate-tax-rate-of-15percent-with-an-eye-on-something-even-higher.html

[peppertree]

1. We'd have to persuade the Cayman Islands, Luxembourg, and the other money laundries to go along

They love having those "mailbox" corporate headquarters.

[Marcuse]

2. It's about the loopholes, not the rates.

[MichMan]

3. Why should other countries take our direction on their tax rates?

Should they have any influence on ours?

For example, Germany taxes gasoline 65 cents per liter plus 19% VAT making it at $7 per gallon. Why don't our politicians pass something similar?

[IbogaProject]

4. Most of the earnings aren't in those money laundering locations

Most of the earnings aren't in those money laundering locations. The earnings are in the developed economies or trade wit the developed economies. We need a global large asset audit. Ask "who owns it?" about every property, security or object worth more than some amount, $50K, $250K, some aggregate amount.