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G-7 SAYS PAY MORE TAX TO BIG TECH (AND CO)
The G-7 deciding to make big tech companies (and other multinationals) pay at least 15% tax (currently estimated at around 10%) set eyes rolling this weekend. While generally lorded by tech, nations and big organizations, some say it does not go far enough.
G-7 finance ministers met in London also endorsed proposals to make the world's biggest companies — including U.S. based tech giants — pay tax in countries where they have lots of sales but no physical headquarters. NPR explains the nuances:
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Amazon's response doesn't offer much insight; most big tech said the same: "We believe an OECD-led process that creates a multilateral solution will help bring stability to the international tax system. The agreement by the G7 marks a welcome step forward in the effort to achieve this goal. ". While big tech firms aren't coming out against this now, expect issues to arise as details emerge. Behind closed doors, Lobbyists will likely be chalking up hours as this represents billions in lost profit.
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__ DO __ Expect pushback despite the ‘we’re fine to pay more tax’ cries. Decades in the making, the devil will be in the detail, and there is not much of that yet. Perhaps the biggest indication of the impact? The news didn’t even cause big tech stock to wobble. // __ DON'T __ Think this doesn’t have massive implications for countries. Cyprus and Ireland are the losers here, they’ll look a lot less sexy to big tech and multinationals now. Although Oxfam does point out that the bar has been set low. The Biden administration has been pushing this agenda for some time now, but reforming the global tax system isn’t going to be a quick win as precedents and billions of dollars are at stake.
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