RICH NOT POOR NATIONS BENEFIT
Rich not poor nations benefit. Many of the International Tax Agreements that are made never make headlines across the world. With politics, wars, and Covid vying for the public’s attention, the impact of certain tax agreements seem trivial to many world citizens. Yet the impact to poor nations on these agreements can hurt their economic development and in some instances can actually cause economic dislocation. As the Organization for Economic Co-operation and Development tries to find agreement on a global corporate tax rate for establishing a minimum rate, the Biden Administration is making its views known. The U.S. proposed a hefty rate increase of 21 percent, which was in line for its national interests and its global interests, due to need to rebuild a world economy battered by the economic fallout of Covid-19. The 21 percent rate is higher than the previous rate of 12.5% that was previously discussed. Rich not poor nations benefit.
An agreement would allow OECD members to tax corporations within their borders the difference between the agreed upon minimum rate and the rate paid on profits made internationally. Those corporations have been fleeing to nations with lower corporate tax rates to educe their fair share of the world tax burden and its hurt the nations where they originally got their start, and made their fortunes, then fled to walk away from their corporate and national responsibilities. Those corporate CEO’s whose salaries and bonuses have gone thru the roof, have been incentivized to turn their backs on the responsibility that for generations was placed on international corporate CEO’s before them. This is only due to greed and the citizens of the United States, and in fact many other nations have had enough of large corporate interests paying such a low amount in taxes. Maybe they can pay more taxes and look for Tax Resolution Services for help.
While it appears that the U.S. is leading the charge in this effort, many other European Nations have voiced support for this effort, as fading tax revenue’s, especially in light of the Covid crisis have deepened the need for additional sources of revenue.