130 countries have agreed on a global tax backed by Biden as the world fights against large companies. So basically, what large companies do is put their headquarters in tax friendly states of countries to keep their money. For instance, state income taxes in Texas, New York, or Connecticut are very different.
The proposal would be for a global minimum tax rate of at least 15% for all corporations. So the corporations that control the world are going to become 15% less productive. If their return on equity is 65% it will be reduced to 50%. That’s a lot of money, for instance, Amazon makes around $26,000,000,000 trailing 12 months.
So lets say that Amazon finds a couple loopholes and pays an extra 10%. $2,600,000,000. That is a lot of loot. Any efficient company will be very tax efficient. Large corporations don’t pay taxes, they find a way around them… a government subsidy would be a great way to avoid it.
This is no joke, if this happens, it will have a huge impact on the global economy. Just my thoughts!
ChiricoChronicles 