At G20, European Leaders Take Aim At Business Tax Breaks
With the support of the Organisation for Cooperation and Economic Development, Britain’s George Osborne, France’s Pierre Moscovici and Germany’s Wolfgang Schaeuble are moving to put an end to businesses exploiting tax laws to shift profits from their home country to pay less tax under another jurisdiction.
Last year, Britain’s Osborne requested the OECD conduct a study examining the scale of corporate tax avoidance, according to The Guardian, newspaper.
The report – Addressing Base Erosion and Profit Shifting – found that “some multinationals use strategies that allow them to pay as little as 5% in corporate taxes when smaller businesses are paying up to 30%.”
In fact, says the OECD report, the existing rules which were designed to prevent corporations from being taxed twice actually allow them to avoid paying any taxes. The OECD contends international tax law needs to be updated to “reflect today’s economic integration across borders, the value of intellectual property or new communications technologies.”
Is Free Trade The Key To Saving Globalization?
As the global economy emerges from the financial crisis there are several trends which reflect the threat posed to globalization, including territorial disputes in the South China Sea, the rise of nationalism in Europe in response to political polarization and economic stagnation, writes Panos Mourdoukoutas in Forbes magazine.
A move away from globalization, he asserts, can be avoided if the Obama administration leads the way in supporting a policy of robust free trade.
He is not the only proponent of the view that free trade will play – ironically – in sustaining globalization.
To see the EU finally back the cause with such enthusiasm is indeed a
breakthrough. From an inward-looking, defensive approach to the challenges of globalisation, Europe seems finally ready to embrace the 21st century,” says Jeremy Warner in London’s Daily Telegraph.
History Will Note George W. Bush’s Role In Global AIDS Fight
While present-day forerign policy analysts may contend the wars in Iraq and Afghanistan will define the legacy of George W. Bush, it might be his administration’s efforts in the global fight against HIV/AIDS that emerges as his real legacy.