Sumary of The Guardian view on taxing the tech giants: time to pay up | Editorial:
- Until Covid, the OECD corporate tax negotiations that began nearly a decade ago had been deadlocked, especially after the Trump administration refused to agree to anything that might raise taxes on US tech giants..
- Individual nations, notably in Europe, had started to impose or threaten stiffer local taxes, leading to retaliatory threats from Washington, but without inhibiting the big multinationals’ lucrative tax-avoidance strategies..
- The underlying reason is that Mr Biden needs to raise corporate taxes to pay for his expensive Covid stimulus and infrastructure renewal plans..
- The plan would create stability to allow the administration to increase corporate taxes at home without the fear that other countries would undercut it with rates as low as Ireland current 12.5% corporate tax, divisive competitive tactics that have fed the multinationals’ profit-shifting strategies…