G7: Rich nations back deal to tax multinationals

Re:G7: Rich nations back deal to tax multinationals by nomoreplease on Saturday June 05, 2021 @08:39AM (#27404426)

Depends what you mean by loop holes. In the US, you can deduct R&D or capital costs like building a factory. That can make your tax bill nearly zero. I wouldn’t call that a loop hope. It’s something out there to incentivize capital spending and job creation. Other countries have the same

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Re:G7: Rich nations back deal to tax multinationals by cheese_van on Saturday June 05, 2021 @09:44AM (#27404949)

Perhaps by "loop holes" we should instead say "tax law".

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Re:G7: Rich nations back deal to tax multinationals by bodono on Saturday June 05, 2021 @09:33AM (#27404854)

Right, so the question is will those 'deductions' still be allowed or not? If so, then get ready for endless deductions from countries that want lower tax rates than 15%.

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Re:G7: Rich nations back deal to tax multinationals by nomoreplease on Monday June 07, 2021 @02:00PM (#27425826)

I would hope they're still allowed, wouldn't you? Incentivizing new factories incentivizes new job creation. The income from these jobs are taxed perpetually. Otherwise, companies will sit on the cash or distribute it to shareholders in the form of dividends, which increases the wealthy shareholder's wealth, with only a one-time 15% going to taxes.

This isn't to say that I don't want businesses taxed, but if a business had 10B in profits, but deducts 5B for capital improvements, then the 5B in remainder can be taxed at 15%

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