G7: Rich nations back deal to tax multinationals

Read the Story

Show Top Comments

Saying they are on board and actually doing something is 2 different things. I’ll believe it when I see every major country pass legislation on it.

DonDickerson

I still fail to see how this will address the real problem of multinationals channeling profits to offshore tax havens with lower or zero tax rates on corporate profits. Surely a better solution would be to institute a global rule where multinationals are taxed proportional to where there customers live, and not where their headquarters or tax base has been established. For example, if 10% of Amazons profits are earned from UK customers, then 10% of Amazons global Profits would be taxed in the UK. This prevents avoidance which is the real source of the problem. This would also give all countries more power to set their tax rates without fearing a competitive race to the bottom with other jurisdictions, since firms would no longer benefit all that much from playing jurisdictional arbitrage with their tax base.

ProductivityPuzzle

This is the way. – If Ireland doesn’t want to play ball than they can be tariffed to hell by the worlds largest nations. Give us back our tax dollars.

HennyDthorough

I love that just last week people here were saying that it’s impossible for this to happen.

Tsukku

Finally. We needed to stop this race to the bottom.

lostshell