The US should not play, and allow all the worlds great companies to move back to the USA.
German Finance Minister Olaf Scholz has called for a global minimum tax on large technology companies, The Telegraph reports, and it’s a move aimed at ensuring tech firms pay taxes in the countries in which they generate revenue rather than only in the countries where they’re headquartered. “We need a worldwide minimum tax level that no state may go below,” Scholz told Welt am Sonntag. “We require coordinated mechanisms which prevent the displacement of revenues to tax havens.”
Large companies like Google, Apple, Facebook and Amazon have tended to establish European headquarters in countries with low corporate tax rates, such as Ireland and Luxembourg. But that hasn’t stopped other countries, including France, Italy and the UK, from pursuing tax revenue that they feel they’re owed.
Germany’s call comes as Europe is considering an interim tax on revenue generated by digital companies within the European Union. Under the plan, firms earning at least €750 million globally and €50 million inside the EU per year would be subject to a three percent tax until a more long-term solution was put into place. While Germany was a strong backer of the interim tax initially, it has since called for debate on the plan.
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Germany calls for global minimum tax on large tech companies
Large companies like Google, Apple, Facebook and Amazon have tended to establish European headquarters in countries with low corporate tax rates, such as Ireland and Luxembourg. But that hasn’t stopped other countries, including France, Italy and the UK, from pursuing tax revenue that they feel they’re owed.