January 23, 2023 - Douglas Myser

Americans tax revenue taken by EU. With the movement worldwide to raise more revenue, to combat the additional spending by governments to deal with the Covid pandemic, the European Union is set to make a permanent 15 percent minimum tax on multinational corporations, with the U.S. Congress stuck in neutral, and no agreement between Republicans and Democrats on what to do. In fact, over 130 nations have adopted the 15 percent minimum, but Congress hasn't passed any bills that would force the U.S. tax law to line up with the new international laws. Yet the multinationals, even those from the U.S. The rules adopted by the 130 nations state that only countries adopting the minimum tax can penalize any multinational company operating in their jurisdiction by "topping up" the tax bill of the multinational in their home country, if it doesn't tax the profits of that company by the 15 percent minimum. Americans tax revenue taken by EU.


The net impact is that many U.S. based companies could get a tax bill from a European nation, and pay the tax that should go to the United States, to a foreign government. Treasury Secretary Yellen, was supportive of the measure and stated that she hoped enough pressure would be put on the Congress, to force them to also adopt a measure already adopted by 130 other countries. It seems that when it comes to raising taxes on any person, or corporation, even in the face of a dire health pandemic, some member of Congress simply will not do it. Yellen stated that "Eventually Congress will realize if U.S. companies are paying elsewhere, why not take the revenue instead".


The IRS is adding 87,000 new agents and will ramp up collection actions against those who have unpaid tax debts or Unfiled Tax Returns. It seems that the Covid pandemic has seen a sea change in attitudes about the rich and Corporations getting away with not paying their fair share. Now is a good time to check out the IRS Fresh Start Program is you are behind.