Who's willing to pay more?
(Source: politico.com)

clicks | 8 days ago | comments: discuss | tags: cryptocurrency

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(Original link: politico.com)

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Quick Fix — Talking about real money: It’s not just that the Organization for Economic Cooperation and Development projects that a global tax overhaul could raise $100 billion a year. It’s also that at least one big-name tech giant is sounding more than open to contributing part of those funds.
— The Treasury Department is starting to respond more fully to Democratic criticisms that it was too generous to big business in writing the rules for the 2017 tax law, H.R. 1 (115) .
— It looks like there are some holes in President Donald Trump’s State of the Union anecdote on Opportunity Zones.
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Truly the start of something: Today marks 171 years since James K. Polk became the first president to ever be photographed while in office, by Matthew Brady.
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Driving the Day FRIENDLY REQUEST FOR MORE TAXES: Mark Zuckerberg, Facebook’s chief executive, is set to tell the Munich Security Conference over the weekend that the social media titan is well aware that it could pay more if the OECD process succeeds , as our Mark Scott reports from across the pond.
Zuckerberg is scheduled to say Saturday, according to excerpts from his speech, that Facebook accepts that it might “have to pay more tax and pay it in different places under a new framework,” while adding that he understands that there’s frustration surrounding how Silicon Valley titans are taxed currently in Europe.
It’s a seeming acknowledgment from Zuckerberg that a successful OECD process, even if it hurts Facebook’s bottom line, might be preferable to the company getting dinged by all sorts of unilateral digital taxes out of Europe. What’s less clear is how Zuckerberg’s comments will land in Washington, where Treasury Secretary Steven Mnuchin has been pushing his controversial “safe harbor” proposal to help businesses. (At the same time, the safe harbor — at least as explained recently by top Treasury officials — would largely be meant to shield companies that choose to abide by new tax rules from unilateral digital taxes.)
Nine figures! That’s at least what the OECD’s preliminary projections believe a new tax system could raise annually, according to our Melissa Heikkilä. And while Facebook says it’s preparing to pay more, here’s who would end up collecting less — countries like Ireland, Luxembourg, the Netherlands and Switzerland, which are known as investment hubs for their generous corporate tax systems.
Still, that $100 billion figure, which is equal to 4 percent of global tax revenue, sounded like little more than a pittance to some. The Independent Commission for the Reform of International Corporate Taxation, which counts Thomas Piketty, Joseph Stiglitz and Gabriel Zucman among its members, noted that $100 billion is a low estimate of corporate tax avoidance according to the OECD’s own figures, and just a sixth of the International Monetary Fund’s estimates for global tax dodging by multinationals.
NOT FEELING GILTI: It’s no secret what’s been driving much of this week’s tax conversation on the Hill — a New York Times story from late last year, by Jesse Drucker and Jim Tankersley, that described corporate lobbying efforts to soften the blow of the tax law’s Base Erosion and Anti-Abuse Tax and Global Intangible Low-Taxed Income provisions. (Hence this week’s Ways and Means hearing on corporate taxes, and the legislation from senior Senate Democratic tax writers aimed at tax law regulations.)
Now, Chip Harter, Treasury’s top official on international tax matters and a key figure in that NYT piece, is pushing back on the story’s findings.
Harter told Tax Notes and a tax conference in D.C. this week that exempting from the BEAT the interest that American subsidiaries of foreign banks pay to the parent company for loans meant to ensure the bank can withstand a crisis was totally defensible , because those payments have previously received tax accommodations.
It probably should be noted that financial services firms would get an exemption in the OECD tax overhaul, for reasons relat...