G7 Tax hike?
“The G7 group of advanced economies has reached a “historic” deal to make multinational companies pay more tax” was the headline as the richer nations (like the USA) are currently spending money like water using the pandemic amongst the excuses. Finance ministers meeting in London agreed to battle tax avoidance by making companies pay more in the countries where they do business. They also agreed in principle to a global minimum corporate tax rate of 15% to avoid countries undercutting each other. Tech giants Amazon and Facebook are among those likely to be affected. Cue more advertising on both platforms an increase in cost of goods and maybe even the old chestnut “Premium membership” to get the old service at an increased price whilst the free service gets lost in the post or the void of the internet.
- Amazon has €250m ‘back taxes’ overturned in court
- Europe to fight Apple 13bn euro tax bill decision
- The Dane targeting multinationals
The deal announced on Saturday, between the US, the UK, France, Germany, Canada, Italy and Japan, plus the EU, could see billions of dollars flow to governments to pay off debts incurred during the Covid crisis. Negotiated over many years, it will put pressure on other countries to follow suit, including at a meeting of the G20 next month, which includes China, Russia and Brazil.
It’s accepted that these huge corporations are getting off lightly in terms of taxation and in relation to their customers and other smaller businesses. But, wasn’t it those politicians in the first place that gave them the “special” terms and now want a rethink in light of those governments needed more money to throw around on their schemes? If you get your household budget you stick to it and pay your bills. Now G7 governments want more for their budget because they throw taxpayers money at each other like water and want an increase. Be under no illusion any increase only ends up doing one thing and that is increasing the tax burden on the man or woman taxpayer on the street. It is easy for politicians and corporations to wax lyrically about the machinations and dealings of politics but politics is not real life it is a man-made scam that went from being a volunteer job to paid “public duty” in the early C20th that make themselves wealthy and their paymasters (the public) poorer.