If I understand what the G7 proposed, what this ’toon depicts is exactly the opposite. My understanding: They propose to require that such businesses pay no less than a 15% tax on profits, even if they have chosen to site themselves in a tax haven country that charges less. And they propose, if I understood correctly, that such “haven” countries would get their share first, but any remainder would be distributed by an arcane formula to be determined that relates “somehow” to the “amount of added value” that happens “in” the various other countries where the company does business. Something like that. Suggesting that this somehow passes through the business untouched and is taken only from the poor countries is, imo, a flat lie.
PS: Such “haven” countries could, I believe, simply increase the amount of tax that they take, without any harm to their income, since there will be no other country that such a business could move to to get an advantage. And if they DO move out, well, the “haven” would still get taxes “proportional” to the amount of economic behavior that actually happens there.
Concretionist almost 3 years ago
If I understand what the G7 proposed, what this ’toon depicts is exactly the opposite. My understanding: They propose to require that such businesses pay no less than a 15% tax on profits, even if they have chosen to site themselves in a tax haven country that charges less. And they propose, if I understood correctly, that such “haven” countries would get their share first, but any remainder would be distributed by an arcane formula to be determined that relates “somehow” to the “amount of added value” that happens “in” the various other countries where the company does business. Something like that. Suggesting that this somehow passes through the business untouched and is taken only from the poor countries is, imo, a flat lie.
PS: Such “haven” countries could, I believe, simply increase the amount of tax that they take, without any harm to their income, since there will be no other country that such a business could move to to get an advantage. And if they DO move out, well, the “haven” would still get taxes “proportional” to the amount of economic behavior that actually happens there.