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Tip of Iceberg? EU Rules Against Sweetheart Tax Deals for Corporations


#1

Tip of Iceberg? EU Rules Against Sweetheart Tax Deals for Corporations

Deirdre Fulton, staff writer

Striking a blow against sweetheart tax deals that unfairly benefit large multinational corporations, the European Union ruled Wednesday that Starbucks and Fiat must repay up to 30 million euros ($34 million) each in tax breaks they received from EU nations.

The decision is seen as a harbinger of a coming crackdown on such deals across the continent.


#2

At last! Now let's see if they put some teeth in that. Then hope it spreads, even to Wall Street!
* Perhaps the 0.001% will have to have fewer martinis at lunch and forget the Chateau Lafitte Rothschild at dinner. Perhaps even give up the Bentley for a Honda.
* If so, perhaps the kids can eat, Mom can stay home to take care of them, and they will have an affordable chance at an education.
* This presupposes that the acquired taxes don't go into yet more wars, more terrorism and more graft.
;-})


#3

This is the ruling to enable the Financial Transaction Tax on wall street.

I have to pay a Gross Receipts Tax on my Services so should the hedge fund servicer.


#4

Just because the European Union is guided by a moral compass doesn't mean we are. As multi-nationals flee the high taxes in Europe, rest assured we will be offering special tax breaks to lure them to these shores.


#5

All corporations should pay their fair share of taxes? What? How could this be? Isn't that a sign of the Apocalypse? If corporations paid their fair share of taxes wouldn't that be unfair to corporations? Wouldn't that cause the collapse of civilization?

Isn't this kind of unheard of thinking heresy? Fair share of taxes? Ooh you said a naughty!!! That isn't allowed.


#6

I fear it's more like the TTIP of the iceberg and the 9/10 underwater, undercover of secrecy is where the danger lies.


#7

The fact that the TTIP was devised (negotiated - to use their euphemism) in secrecy says about all that needs be said about the influence of corporations in making policy. They get our governments to create a structure to allow them to circumvent our laws and avoid taxes.

It just gets scarier after that point until oligarchy becomes plutocracy and then in the end that plutocracy becomes overt fascism when corporations replace governments entirely.

Maybe humanity is finally going to stem the tide that is overtaking democracy everywhere?


#10

This is a good first step. However, I'm afraid that the manufacturing companies will pick up and go to countries that are not in the EU like China, leaving unemployment behind.

What governments may do for these corporations to entice them to stay where they are is to allow lower salaries, less workplace and pollution regulations, hire less workers or import people who will work for less like they've done in the US. But this may not be enough. Corporations might move to places with little or no taxation. For this to stop it needs to be done on a global scale.

Also, besides making them pay their fair share of taxes wherever they are located, something must be done to counter the bribes, graft, absence of environmental regulations, low pay, etc., that attract these corporations offshore.

Corporations love to set up in dictatorships and shelter their profits in offshore banks. Maybe they'll come back to America.


#11

Ha, it will probably go to private adjudication and get overturned due to loss of profits...


#12

If the gov'ts of the developed world built homeless shelters, like they build tax shelters, we'd all be living through the first cold day in hell. And, I'm an atheist.


#13

So who here can tell us about international tax law? (Seriously).

I have the assumption that all sales have taxes, but if you move your company headquarters to a country, then you get (certain) tax breaks. If a company's 'headquartered' in the Cayman Islands, then you get applied tariffs (unless there are none like the US). I feel maybe I've oversimplified it?


#15

In a trade agreement the first thing to go are tariffs. The last thing to be mentioned if ever are labor costs protected by tariffs to maintain achieved quality of life for the employee. Mgmt thinks they need to drive for a global wage base standardized on the lowest achievable wage ie convict or child labor
Tax avoidance is achieved by keeping those (Apple) profits overseas untaxed untariffed and brag about how bad they feel morally you know.... Just give us a special tax deal and we'll do the morally responsible thing. I mean we are the good guys right. Signed Corporate America


#16

Treading on dangerous ground. Could this signal the end...of the EU?


#17

Hi Cyn,
* Great! You've earned it! I'd like to hear you play sometime. I still have hopes of sitting, having lunch, perhaps watching the falls and yarning and yarning. :wink:
* As to retirement, I've been retired for twenty-five years and have found myself busier than when I was a 56 hour firefighter. :wink: But, most of it has been either useful, or enjoyable. Some of it both.
* All the best to you!
* Steve
;-})


#18

In NYS there has been an FTT, called a STT, Stock Transfer Tax, for over a 100 years - in the early years it didn't amount to much, stock market wasn't that big a deal (and it shouldn't be now, IMO ...). Later in the 70's the proceeds were used to bail out NYC's financial woes, but starting in '83, the proceeds were rebated, yup, rebated to the brokers and traders that paid them - the form reporting the tax owed has, as part of it, the application for rebate ... For the last 10 years or so, with HFT, et.al., those proceeds have amounted to >$10 billion (with a B) annually .... - in a state our pols keep telling us "can't afford" to improve education, health care, etc. because of our debt ...

The GP has raised this issue for years, but the D/Rs won't touch it with a 10 mile pole; why NYers aren't really pissed about this, i don't know - ...


#19

The answer is to raise tariffs on imports - if you want to sell it here, you have to make it here, or you will pay, one way or the other ....


#20

Which is why folks need to focus like a laser on our "secret trade deals" ...


#23

I've got an ih address. Just sent a message to see if that is still alive. no gmail.
* Steve


#24

This is a start, but what needs to happen is that all businesses pay a country's tax rate on any profits made in that country. Simples. Richer countries could start this off unilaterally, as the corporations would not want to lose the millions to be made there. Then reciprocity negotiations could begin so that they wouldn't be taxed in both the country of headquarters and the country of trade. Most countries would end up richer; some smaller tax havens might suffer, but that would be the price of equitable dealings.