Posted on 07/16/2022 7:45:23 AM PDT by karpov
The Biden administration’s international tax agenda suffered a setback when Sen. Manchin rejected a 15% minimum tax on multinational companies this past week, dimming prospects of turning last year’s global tax agreement into reality.
Biden administration officials had planned to use Democratic fiscal legislation to enact the U.S. piece of the deal struck last year by Treasury Secretary Janet Yellen and more than 130 other countries. They wanted quick action to set a 15% minimum tax on U.S.-based multinational companies in each country where they operate, a move aimed at showing international leadership and prodding other countries to follow suit.
Mr. Manchin (D., W.Va.) was the pivotal vote, and he explained during a radio interview Friday his reluctance regarding the U.S. going first. His comments don’t officially kill the international tax changes. The White House has said talks will continue, though President Biden on Friday urged adoption of a narrower package focused on prescription drugs and healthcare.
Mr. Manchin has shifted his position at times during a long stretch of negotiation with Democratic leaders. As Democrats run out of time before November’s midterm elections, Mr. Manchin’s statements make it much less likely that the U.S. will adopt the 15% rate soon.
...
Legislators and negotiators around the world had been waiting to see what the U.S. Congress would do. Mr. Manchin’s comments and his broader objections to his party’s legislation will now reshape the global discussions, putting pressure on other countries to go first in imposing minimum taxes.
“We’re not going to go down that path overseas right now, because the rest of the countries won’t follow,” Mr. Manchin told the radio host Hoppy Kercheval. “And we’ll put all of our international companies in jeopardy, which harm the American economy. Can’t do that. So we took that off the table.”
(Excerpt) Read more at wsj.com ...
A government can sign up but a new government can tear it up
And the “global 15% tax” goes where???????? The UN probably.
A global tax. Paid to who?
Good for Manchin!
p
Once they grab our money it will be hard to stop them
I'm not sure who gets the bulk of it but I know who gets their 10% cut.
Its simply amazing how much utter ruin was avoided by the margin of one Democrat Senator from West Virginia and one from Arizona.
Frightening.
Can I just make out a check for my income to Herr Oberfurher Klaus.
Exactly how much would China pay?
Remember when people warning of a one-world government were ridiculed as conspiracy nuts? Yeah, not so much anymore.
The world is getting closer together. It’s like HOA fees in a condominium.
We have more to gain with bilateral agreements. They can be cancelled at any time.
The 15% corporate income tax would be paid to the U.S. Treasury as it is now. The idea of the global tax agreement is stop countries from competing on the basis of low corporate income taxes.
Any country can say and do:
1) 15% ? Ok we do it
2) to any foreign company, the country said here is our “signing” bonus to invest here :$$$ per year, curtesy of our government
They are calling this global tax scheme a “deal” or an “agreement”. But since foreign countries are involved, I see it as a treaty. And treaties must be approved by 2/3 of the Senate, not by simple majorities.
I’m just a dumb old guy. So I guess I’m wrong. But where am I wrong?
Or to Soros
No, the majority of nations are ganging up on countries with low Corporate Income Tax, like Hungary. The treaty will require all countries to tax corporations a minimum of 15% on income. It’s a way to prevent companies fleeing from high tax countries to low tax countries. Ireland had low income taxes for many years, and became a center for high-tech companies, but then caved a while back and agreed to raise taxes on companies.
Which companies pay less than 15%? In which countries?
I’ll like him a lot more if he switches parties and puts an end this nonsense in the Senate. Seems like his bargaining power with McConnell will peak just before the mid-terms. Either the Republicans pick up seats and don’t need him, or the distribution remains the same, in which case he can still reap a great deal, or the GOP loses enough seats that his conversion no longer matters. If he defected at the outset of a lame duck period (i.e., last two months of Dem control of Senate) it would be of great value in stopping the kitchen sink of outrageous legislation that would otherwise be rammed through the Congress.
> Exactly how much would China pay? <
China has agreed to this global tax scheme. So Chinese companies would pay a minimum 15% corporate tax, just like every other company in the world.
I kid, of course. Chinese companies will pay exactly what the Communist leadership wants them to pay. If the leadership wants them to pay 0% to help them undercut Western companies, then 0% is what they’ll pay.
That 0% will be recorded as 15% on the books. Who will challenge that? No one will.
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