Dawn chorus: Biden throws tech giants under global tax bus
America to propose multi-nationals pay levies to nations based on sales in those countries as part of push for minimum corporate tax; Luxon rents two of his seven properties back to Govt
TLDR: US President Joe Biden will propose to the OECD that multi-nationals pay levies to nations based on sales in each country as part of a drive to set a minimum corporate tax rate globally at 21%, the FT reported this morning. Here’s my comment piece on this new plan with my weekly ‘When the facts change’ podcast out this morning via The Spinoff.
This is a big shift in the prospects for raising corporate taxes and increases tax on the wealthy generally. Finally, the world’s economic policy grownups are working out that rising inequality as created a doom loop for global capitalism whereby ever-more assets shifting in fewer hands is slowing economic growth and eroding stability.
New Zealand’s apparently progressive Government is way behind the curve on this with its refusal to tax wealth and its dogged adherence to a low tax and low debt Government. New Zealand’s net debt is less than a third of the level of other developed countries with similar credit ratings, yet the PM and Deputy PM are refusing to lift incomes for the poorest, to tax wealth or invest sufficiently in housing and climate infrastructure because they’re worried about higher debt.
Elsewhere this morning, Stuff’s Thomas Coughlan is reporting Christopher Luxon was renting two of his seven properties back to the Government, while Stuff’s George Block is reporting most of New Zealand’s trained vaccinators have yet to start work and that 260,000 doses are sitting in storage, with just 90,000 jabs given so far.
Scoops and news breaking this morning
Briefly in our political economy
Sign o’ the times news
Somthin’s brewin’ here
Useful new reports and data
Chart of the day
