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International tax harmonization is meaningless unless it includes ALL aspects of national taxes especially incidence and avoidance. It would be best to forget dreams of rationality. Individual polities are ruled mostly by contests between powerful interests. How would even Solomon resolve these issues harmoniously on an international level? Perhaps by turning the baby into a puree and allocating that paste to each nation on a per capita basis? Even that would not do.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Sep 8th, 2021 at 03:15:19 PM EST
I think Biden's proposals are probably a sincere attempt to get global corporations to pay a greater share of US taxes and in this way to reduce the tax burden on the less well off in the USA, relatively speaking.

But essentially, on an international level, they are also an attempt to avoid "a race to the bottom" with different countries competing for FDA using lower tax incentives. So far so good.

But then how are smaller peripheral states to compete with larger central states  for global investment? The logic of global capitalism is the ever increasing centralisation of capital in the larger capitalist centres.

How is Latvia then supposed to compete with Germany for investment? There is virtually no redistributive force within the EU (max EU budget c. 2% GDP) to provide ongoing structural supports to the Latvian economy to level the playing field. How would Minnesota compete with New York without some Federal support?

There is a very good reason why national capitals have jealously defended their continuing sovereignty in taxation matters, even as they ceded some sovereignty in fiscal mattes as part of the European Fiscal Treaty.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Sep 8th, 2021 at 04:58:43 PM EST
[ Parent ]
I'll be interested in what Biden says on tax when he sorts out Delaware

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Wed Sep 8th, 2021 at 06:47:48 PM EST
[ Parent ]
It doesn't look like he has any plans to do so in which case all this corporate tax reform plan talk is dead in the water. Why does the US not simply insist that any company doing business in the US must be tax resident there, and have a minimal Federal tax rate for all companies even those legally resident in Delaware?. The EU could do the same to eliminate tax shelters like Jersey or the Cayman's? Without that global capital will continue to migrate outside the EU.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Sep 8th, 2021 at 07:10:39 PM EST
[ Parent ]
An interesting parallell development is the GDPR interpretations. I was on a webinar this spring listening to Max Schrems on how to interpret the Schrems II ruling. In the Schrems II ruling the ECJ struck down the deal between the EU and US as insufficient, leaving much of the IT-sector in EU in an unclear situation as to wheter US plattforms can be used at all.

One of the ways forward pointed out at the webinar is US companies forming EU daughter companies in an EU country that has strict rules against mother companies giving daughter companies direct orders to comply with US authorities. Absent a diplomatic deal between the EU and the US, this looks likely. If they have to split up the platform business for the different blocs, that should make them easier to tax.

by fjallstrom on Thu Sep 9th, 2021 at 08:49:42 AM EST
[ Parent ]
GDPR created a host of operational barriers to market dominance by US IPC operators (telecom customers) and owners (telecom carriers), because the EC continues to "resist" US supremacy in common law and law enforcement of putative "privacy" protection and taxation (sales, royalty transactions).

Schrems II

archive Jul 17th, 2020, 3/03/2021Mar 3rd, 2021

by Cat on Thu Sep 9th, 2021 at 05:39:17 PM EST
[ Parent ]
Then erryone--foreign and domestic-- move they/their/them (nominal) state of incorporation to Nevada or South Dakota in order to avoid (nominal) US corporate tax liability. Failing that, international "grey zones".

archived "jurisdiction of incorporation"

by Cat on Thu Sep 9th, 2021 at 04:00:33 PM EST
[ Parent ]

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