Sunday, 11 July 2021

Low-taxes havens

As it is known, after many governments around the world had declared a state of emergency, citizens were encouraged to stay at home. As a consequence, since March 2020 an increasing number of people have been buying what they need online. And it seems unavoidable that many stores will permanently shut down. Unfortunately, the more big tech companies sell their products and services online, the more retailers shut down their businesses. The picture below shows an old shop whose owner had been selling olive oil and wine for decades. Since early march 2020 it has been shut down. 

The main problem is that big tech companies, such as Amazon and Google, shift their profits to low-taxes havens. And countries where revenues are earned haven't been allowed to tax big tech multinationals. That's why big tech companies can be very competitive and so able to destroy retailers around the world. In other words, they're destroying the middle class slowly and gradually.

In this perspective, two days ago in Venice, finance chiefs of the G20 large economies have just endorsed the first step of a plan to stop multinationals shifting profits to low-taxes havens. The deal would establish a global minimum corporate tax of at least 15%, as big tech companies would be taxed on where they sell products and services, rather than on the location of their headquarters.  

10 comments:

  1. ...corporation don't want to pay taxes, it's that simple!

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  2. Era ora che intervenissero in tal senso, anche le piccole imprese hanno il diritto di ripartire!
    Kisses, Paola.

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    Replies
    1. Vero! Il processo di graduale distruzione della piccola e piccolissima impresa deve essere fermato.

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  3. Replies
    1. Thank you for the appreciation! Glad to hear you were interested in these topics ... although you didn't share any point of view :-)

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  4. Giorgio this is sad, the closing of the olive oil store. My own small business is closing as well. 34 years and it's over. Tax cuts won't help me but I hope the plan helps someone.

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    1. Unfortunately, olive oil, wine, veggies, fruits, drinks, food, and groceries can be delivered to our doors by online food delivery companies ... but I think it isn't the same food as we see in the local grocery stores.

      Sorry to hear your own small business closed after you had been running it for 34 year. Tax cut may simply help rich people, who become richer because they pay less taxes. Tax cut means less health care, transport services, sewerage systems, education, children gardens, etc.

      Have a nice weekend, Nicole!

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  5. It's a shame that the olive oil and wine merchant, like so many others, had to shut down. Thought provoking post.

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