More than 130 countries reach deal on corporate minimum tax

Nigeria, Kenya, Pakistan and Sri Lanka have indicated they will not sign up.

Additionally, Switzerland will be offering subsidies and other incentives to offset the 15% tax.

https://www.swissinfo.ch/eng/switzerland-plans-subsidies-to-offset-g7-corporate-tax-plan/46696800

The trend towards global government at this stage of human evolution is a bad idea in general. Governments always become increasingly corrupt and oppressive, and the only saving grace is that citizens have (until recently) always been free to leave for greener pastures. Some form of decentralization is the answer, and it will require a total rethink of taxes and how government is financed.

In the meantime, there will always be governments that will either not sign on to this bill, or sign on and find loopholes to attract corporations. Money is getting tight for governments around the world, so they will find ways around anything that restricts their ability to attract funds.

The Deal, called the "Statement on the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy," is now up to 136 countries, with the addition of Estonia, Hungary and Ireland. From here, it goes to the G20 Finance Ministers meeting in Washington D.C. on 13 October, then to the G20 Leaders Summit in Rome at the end of the month.

Little specific language is available to the public so far; more may be released next week. Looks like they want to avoid some classic "circling of the wagons" (to use a metaphore of the Hollywood classic western film). Can't really debate something if you don't know what is says.

The devil will be in the details on this. The above references speak several times of re-allocatation of taxing rights of nations within this new tax framework.

They want to reach agreement on this REALLY fast, too. They are already talking about effective implementation from 2023 onwards. For a treaty of this size and impact, that's pretty fast.

Depending on the specific language adopted within the month, there can be - perhaps at least four non-EU countries that I know of - that such re-allocation of sovereign taxation rights may be - well, let's just say it for what it really is - a real problem, that may amount to this becoming a non-starter. If those countries cannot engage this agreement because of their standing constitutional provisions, then they potentially may become the future home heaven for many large companies and corporations that seek to avoid the added revenue collection. And the whole thing may crumble. And then talk of a digital tax framework will be next on the agenda (and then let the political games really begin in earnest).

The OCED has some information at https://www.oecd.org/newsroom/international-community-strikes-a-ground-breaking-tax-deal-for-the-digital-age.htm

and

https://www.oecd.org/tax/beps/beps-actions/action1/

and

https://www.oecd.org/tax/beps/faqs-statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisation-of-the-economy-october-2021.pdf

“Rather than competing on our ability to offer low corporate rates,” she said, “America will now compete on the skills of our workers and our capacity to innovate, which is a race we can win.”

Globalization comes with a lot of trade-offs. The vast majority of gains have so far been made by corporations and large capital holders.

Thfact that many large corporations and tax sheltering nations are behind the bill is a bad sign. The recent release of the Pandora Papers show that big corporations and wealthy individuals are building fortunes using public resources of many nations and paying little taxes. The tax burden is now on the middle class and working poor.

15% Minimum Corp. tax is a good start, the problem is we the people will end up paying for it one way or another, and that is a FACT.

This from the same people who're enforcing vaccine mandates to fill the pockets of some of the biggest corporations on Earth, which no doubt would be stashing their profits in tax shelters... Even if these companies are subject to the minimum 15% corporate tax, they'll just have their lobbyists "ensure" that governments tweak other rules that make this one null and void to all intents and purposes.

So call me a cynic, but come back and talk to me when they actually mean it.

You could write this headline alternatively like this: "More than 50 countries still have no deal on global corporate taxation." Since that would be equally true.

And 57 countries are more than enough to guarantee that NOTHING will change other than the locations of all tax-sheltered corporate wealth...if indeed they actually need to move at all. You don't expect the same corporations who fund all our dear leaders' posh lifestyles to actually be punished for anything, do you?

When do we get personal barcodes to ID with on all those millions of brand new "security" cameras now everywhere? How about a "cashless" world where, just like The Powers have done with social media, banking, and funding restrictions/bans, they can "dePersonize" anyone they don't like with just a tap of a computer button? And why not?

Long story short: governments are scraping the bottom of the barrel. The fiscal incompetence of our "leaders" has become so severe, just in time to see a huge chunk of the most productive in society retire, restructure their investments to low yields, and SUCK as much cash pensions and health care out of the already teetering system as possible...guess who's going to pay for that? (Hint: it ain't "corporations"!)

By way of reference: the US's Social Security retirement system runs out of money in just 12 years, 1 year "sooner than expected", while Medicare Part A runs out of money in 2026! Can you say "Retirement-Free-Future" kids? For most, it's already on its way!

What about China and Taiwan?