Germany urges global minimum tax for digital giants

October 21, 2018
Germany's Finance Minister Olaf Sholz (R, pictured May 2018) said there needs to be a "minimum tax rate valid globally which no state can get out of (applying)"

German Finance Minister Olaf Scholz said in an interview for publication Sunday he backed a global minimum fiscal regime for multinationals as Europe looks to levy tax notably on US tech giants.

"We need a minumum tax rate valid globally which no state can get out of (applying)," Scholz, a social democrat in conservative Chancellor Angela Merkel's coalition government, told the "Welt am Sonntag" weekly.

Europe is trying to devise a strategy to tax profits from the likes of Google, Amazon, Facebook, Apple and such as YouTube and Airbnb which currently manage to keep fiscal exposure to a bare minimum.

Digital platforms "aggravate a problem which we know well from globalisation and which we are trying to counter—the shifting of profits to fiscally beneficial regions," said Scholz.

Scholz was last week nonetheless reported not to be convinced by a controversial EU proposal to slap a European tax on US giants amid worries it may turn out to be both ineffective and protectionist.

France for a year has rallied EU partners to draw up the tax which Paris says is necessary to ensure tech giants pay their way.

Scholz explained he had launched an initiative designed to help states react to so-called fiscal dumping in support of embryonic OECD plans designed to fight tax transparency and cross-border tax evasion.

"We require coordinated mechanisms which prevent the displacement of revenues to tax havens," said Scholz.

The European Commission, the EU's executive arm, has proposed a European tax on "big tech" with susbstantial digital revenue in Europe, based on overall revenue in Europe and not just profits.

But lead opponent Ireland says a growing number of countries are grumbling about hidden problems with the tax, including that it could inadvertently snag European companies.

There is also concern as to what consequences might flow from such a plan at a time against the backdrop of a potential full-blown EU-US trade war.

Berlin worries that cranking up the ante on trade with the United States by launching what Washington could see as an attack on Silicon Valley's corporate giants may threaten German auto exports.

Germany has already shown some opposition to a French plan to tax tech giants three percent of certain forms of revenue including advertising and sale of personal data.

French Finance Minister Bruno Le Maire said Thursday he will in the coming days urge EU members to commit to backing a tax.

A March proposal by the Commission includes introducing a tax as a bridge measure until such time as the OECD can roll out a measure which can be applied globally.

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Eikka
5 / 5 (2) Oct 21, 2018
Digital platforms "aggravate a problem which we know well from globalisation and which we are trying to counter—the shifting of profits to fiscally beneficial regions," said Scholz.


In other words, governments don't want to compete with each other on who has the lowest taxes - they want all to have the highest taxes. When private corporations do this, it's called a cartel. When governments do it, it's called a trade agreement.
rrwillsj
not rated yet Oct 21, 2018
What raises my hackles on this proposal? The Global Digital Cartel paying Global taxes?

Not only removes the authority from local societies to impose taxation and regulation. Placing that authority into the control of a Global Body.

Simplifying for the plutocracy and their corporate bureaucrats running the Digital Giants, the number of politicians and regulators they would need to need to corrupt.

And guess what? You will still be paying to be allowed access to the net. While continuing to be required to subsidize he supporting systems you have been paying for through a multitude of local taxes and fees.
rrwillsj
not rated yet Oct 21, 2018
- cont'd -

Which does make sense in this age of the Global Fascist Axis, With Fuehrer Putin triumphant over an oppressed world through his lickspittle quislings and collaborators. Happy to brutalize anyone who stands for individual freedom.
granville583762
5 / 5 (3) Oct 21, 2018
Danegeld

NO, No, no, and again no - so if putin proposed this tax would every one agree what a bout the Chinese president as the now defunct EU, English people left for these reasons
The common market is dead in the water without our pounds notes as we did not make that fatal mistake as the crown is still in charge of our dosh, the poor Germans need our dosh, in fact 80billion pounds sterling just for leaving then they will come back for their Danegeld,
Go ahead and let trump pay his German tax's and while trump is squandering the mighty dollar he will send his tax collectors round for more!
https://en.wikipe...Danegeld
granville583762
5 / 5 (3) Oct 21, 2018
Dane-geld (poem) Joseph Rudyard Kipling

It is wrong to put temptation in the path of any nation,
   For fear they should succumb and go astray;
So when you are requested to pay up or be molested,
   You will find it better policy to say: –

"We never pay any-one Dane-geld,
   No matter how trifling the cost;
For the end of that game is oppression and shame,
   And the nation that plays it is lost!"

https://en.wikipe..._Kipling
Semmster
not rated yet Oct 22, 2018
Is there a global body for the prosecution of crooked politicians? Let's get that first before handing them money that bright and hardworking people have earned. Yes?
antialias_physorg
not rated yet Oct 22, 2018
Not only removes the authority from local societies to impose taxation and regulation.

Well, that's the problem they're trying to fix, because currently the 'digital giants' are (not) paying taxes wherever they want.
I.e. they elect to file taxes in some "tax haven" where they don't have to pay any which has nothing to do where they actually make their money. It's like a car maker selling cars in the US and then opening an unstaffed office on the Isle-of-man and claiming that they're paying the taxes there - do you think that would be legit?

The idea is to make sure that such tax havens no longer exist.

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