So everyone who is already above 15% will be limited to 15%, and those below it, can stay below it?
Seems like a waste of time, other than to piss Ireland off, who are below it but will be caught by it.
“The European Commission is asking member governments whether they’d support a plan to cut Hungary out of the EU’s bid to introduce a global minimum corporate tax rate of 15 percent.
Four officials from EU national finance ministries told POLITICO **the Commission officials have been putting calls into capitals for an enhanced-cooperation deal that would nullify Budapest’s veto of the initiative.**
**Hungary’s veto against the tax rate is embarrassing for Brussels**. EU institutions had hoped to be quick about implementing the global initiative and set the pace for **over 130 countries that also backed the accord, including the United States, China, India and the United Kingdom.**
**Tax bills require unanimity to get through Brussels’ legislative machinery**, giving any EU country of any size the power to block them. But enhanced cooperation would allow member countries that favor the measure to progress without having to reach unanimity — leaving Budapest out in the cold.
If there’s support against Hungary, **the EU’s executive arm could unveil the enhanced-cooperation initiative by the time finance ministers meet in Luxembourg next month for their monthly Ecofin meeting**, one of the officials said.”
Considering how Orban is behaving (does not approve sanctions to Russia, openly spreads Pro-Putin propaganda, accuses the EU of being the main problem, pulls racist speeches at rallies…), Brussels should not go soft on Hungary.
This is one of the very few things where I would agree with the hungarian government This bill makes little sense. It would actually hurt Europe’s ability to attract companies to establish or keep presence here. The only benefactor of this bill is the United States, China, and other extremely wealthy countries, since most companies taking advantage of the low taxes in Ireland (Facebook, Google, etc) are from these places.
The global multinational companies evading taxes in Ireland are usually not headquartered and owned in countries like Hungary so this would only be a sacrifice without any benefit on their part.
It’s great that countries work together in stopping Russia or fixing global taxation, but I think the EU needs to make decisions which would take the current situation into account, eg. not hurting the economy even more and picking our own fights.
Let me ask this question, are you, as an individual, paying more, than 15% of your income in taxes? That figure would be closer to 35% or above.
How come we should be excited that a corporation with more, than $20 billion in revenue (the kind of companies this proposal would apply to) should only pay 15% globally? This whole thing is just fucked.
Not being subjected to the minimum corporate tax rule is literally what Hungary wants.
In fact, if everyone else is subjected to the minimum corporate tax rule, and Hungary isn’t, isn’t that strictly *better* for Hungary than if no one is?
I mean, sure, the mechanism [1] is clever (if apparently not uncommon), but what’s the play here, European Commission?
I don’t think that sidelining Hungary this way is viable long-term unless the plan is to eventually disband and then reform the union as a new entity without Hungary.
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So everyone who is already above 15% will be limited to 15%, and those below it, can stay below it?
Seems like a waste of time, other than to piss Ireland off, who are below it but will be caught by it.
“The European Commission is asking member governments whether they’d support a plan to cut Hungary out of the EU’s bid to introduce a global minimum corporate tax rate of 15 percent.
Four officials from EU national finance ministries told POLITICO **the Commission officials have been putting calls into capitals for an enhanced-cooperation deal that would nullify Budapest’s veto of the initiative.**
**Hungary’s veto against the tax rate is embarrassing for Brussels**. EU institutions had hoped to be quick about implementing the global initiative and set the pace for **over 130 countries that also backed the accord, including the United States, China, India and the United Kingdom.**
**Tax bills require unanimity to get through Brussels’ legislative machinery**, giving any EU country of any size the power to block them. But enhanced cooperation would allow member countries that favor the measure to progress without having to reach unanimity — leaving Budapest out in the cold.
If there’s support against Hungary, **the EU’s executive arm could unveil the enhanced-cooperation initiative by the time finance ministers meet in Luxembourg next month for their monthly Ecofin meeting**, one of the officials said.”
Considering how Orban is behaving (does not approve sanctions to Russia, openly spreads Pro-Putin propaganda, accuses the EU of being the main problem, pulls racist speeches at rallies…), Brussels should not go soft on Hungary.
This is one of the very few things where I would agree with the hungarian government This bill makes little sense. It would actually hurt Europe’s ability to attract companies to establish or keep presence here. The only benefactor of this bill is the United States, China, and other extremely wealthy countries, since most companies taking advantage of the low taxes in Ireland (Facebook, Google, etc) are from these places.
The global multinational companies evading taxes in Ireland are usually not headquartered and owned in countries like Hungary so this would only be a sacrifice without any benefit on their part.
It’s great that countries work together in stopping Russia or fixing global taxation, but I think the EU needs to make decisions which would take the current situation into account, eg. not hurting the economy even more and picking our own fights.
Let me ask this question, are you, as an individual, paying more, than 15% of your income in taxes? That figure would be closer to 35% or above.
How come we should be excited that a corporation with more, than $20 billion in revenue (the kind of companies this proposal would apply to) should only pay 15% globally? This whole thing is just fucked.
Not being subjected to the minimum corporate tax rule is literally what Hungary wants.
In fact, if everyone else is subjected to the minimum corporate tax rule, and Hungary isn’t, isn’t that strictly *better* for Hungary than if no one is?
I mean, sure, the mechanism [1] is clever (if apparently not uncommon), but what’s the play here, European Commission?
Someone with a bigger degree please explain.
[1] https://eur-lex.europa.eu/EN/legal-content/glossary/enhanced-cooperation.html
I don’t think that sidelining Hungary this way is viable long-term unless the plan is to eventually disband and then reform the union as a new entity without Hungary.