We are saved! Saved!

The OECD said more than $100bn (£73bn) was expected to be raised by curbing profit shifting. About $150bn is expected to be raised from the global minimum tax rate.

Those numbers are in fact bollocks but still.

Consider the total impact. Global tax revenues are around $25 trillion. Governments will – OK, might – have 1% more to play with.

We’re saved I tell ‘ee, saved.

8 thoughts on “We are saved! Saved!”

  1. From the OECD “Under Pillar One, taxing rights on more than USD 100 billion of profit are expected to be reallocated to market jurisdictions each year. The global minimum corporate income tax under Pillar Two – with a minimum rate of at least 15% – is estimated to generate around USD 150 billion in additional global tax revenues annually.”
    So that first bit in the Guardian about additional revenue from curbing profit-shifting isn’t $100bn at all, it’s the difference in what will be raised from where the current taxing rights on that $100bn are going to be allocated, compared to where those rights are allocated now. Unless they are currently taxed at zero, and will be taxed at 100%, the Guardian has this wrong.

  2. So some sort of global consensus is to set a universal tax rate? Remind me why I voted leave.

  3. Our lot have already ‘negotiated’ an exception for financila service, though this looks more like a fudge to disguise a climbdown on the Google tax and resulting US import traiffs, etc.

    Expect more exceptions, and general ignoring of the rules. Also expect more nameplat operations in CI, IoM, Bermuda, Ireland, Luxembourg,…
    It’ll be great when they send the EU tax collectors to Shanghai, to collect tax on sales to EU customers…

    This is about optics, not actually doing anything. But the bunfight over who gets the tax slices is entertaining to watch. Backstabbing delight.

  4. The so-called intelligent ones believe we exist in a static universe: as it is now, so ever will it be. It assumes those profits continue to be made to be taxed.

    As Adam Smith pointed out, it is not a big chess board with people chess pieces incapable of moving except as guided by the ‘man of system’.

  5. Andrew C’s maxims on taxing and spending.

    (i) New taxes never raise anywhere near what the government say they will raise
    (ii) Any spending plans on new projects by government will vastly overshoot budget

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