As we become older, we tend to see certain changes in the way we choose to live. We usually begin our adult years by living in an apartment, simple and private, and then marriage and children compel many of us to seek bigger places to live, places that can accommodate more people and pets. We also get used to budgets, and if we are lucky, to spending and saving.

We also inevitably become more accustomed to taxes, although many of us from our first payments of income taxes to our payments of property taxes start to feel the increasing resentment that we have as we make out a check that covers the latest property tax payment. We can’t help thinking that the money could’ve been used for a family vacation.

I think of taxation because the Biden administration has won the support of 130 countries for significant changes in the way companies are taxed internationally. Two Wall Street Journal reporters give the following description: “Governments will now seek to pass laws ensuring that companies headquartered in their countries pay a minimum tax rate of at least 15 percent in each of the nations in which they operate, reducing opportunities for tax avoidance.” Currently, annual tax avoidance is no small amount. Some estimates place that amount at up to $240 billion annually.

Not all nations have signed up, of course. Three EU members, Ireland, Hungary and Estonia, have failed to sign, according to Reuters.

Nonetheless, some of the most notorious tax havens have signed on. These include the Cayman Islands, Bermuda and the British Virgin Islands, Reuters reports.

In the midst of this good news for the Biden Administration, more economic good news was offered by the Congressional Budget Office when it increased its forecast for economic growth in the United States this year. It also forecast smaller federal budget deficits and slightly reduced federal debt.

All of this good news will be seen through the reality of increases in inflation in the fourth quarter of 2021 and a projection of slowing of price increases in 2022. A good sign for these changes is that the big technological firms are already viewing these tax changes positively. There will be a careful review of those changes, but if they are generally accepted by big business, they will be more readily accepted by business in general.

Hopes for the continuance of this economic good news will be tempered by the realities of the battle with the coronavirus. The fast increases in the Delta variant of the virus throughout the world worries many. It now exists in 85 countries and is impeding the reopening of economies. Moreover, it is underscoring the differences between those countries that are well inoculated and those that are not. The delay in eradicating lockdowns, the impositions on travel restrictions and the increases in hospitalizations in various nations are grim testimonials to the continued destructive power of the virus. In those nations suffering badly from the Delta variant, such as India, Indonesia and Britain, the eradication of masks will be significantly delayed. It is a bitter irony that while the economic authorities in many nations are finally seeing the possibilities for reopening of their economies, others are making plans to further delay the opening of theirs. Those delays will cause further economic damage.

Those working for health departments in the United States and abroad continue to hope that more people will become vaccinated, since this is the surest protection. The sooner populations become fully vaccinated, the greater the economic benefit for everyone.

Dave Kaplan, author and retired educator, writes from his home in Santa Barbara, Calif.

(17) comments

mpjeep

Corporations have bamboozled the US IRS for years, thus avoiding paying taxes owed or paying very little in taxes for their international businesses.

Here is a question/problem for either a worldwide or territorial tax system: What If a company is based in one country, holds patents in another country, sources material from four different countries, assembles its product in another country, and sells its products in yet another country. Where should taxes be paid?

And will the Cayman Islands finally tax money that Hunter is holding for Joe?

noitall

Corporations are, by definition, beholden to their stockholders and to the corporate charter - not the IRS.. Taxation is still confiscation - words have meaning Puzzled by the "advantage" of filing an patent in any other country? If China violates national and a US patent law. Every corporation - 17 I worked for paid all taxes and some confiscations. It is NOT a crime to avoid taxes.

David Collins

Biden balanced , of course it is . He is not the only one that has failed at this but he is the current offender and on steroids it seems . Just following the advice of his misguided advisors . He is too burned out for thinking but that is the plan just like Harris is there to make him somehow look good . So much for plans , ineptness meets ineptness .

The tax and spend on wasteful things democratic majority is just doing what they always have and sadly the republicans have realized that their tactic seems to work . For the short term . Long term , we will be mired down in debt forever if responsibility goes lacking .

The Covid and it’s variants is being hyped day and night scaring the nervous nellies half to death , as intended . Strange that India makes so many of the drugs and vaccines we use but failed it’s own people . Perhaps the caste system is still alive and well . Can’t control what other countries do and do not need to borrow trouble . Let us tend to our own back yard , something that we are failing miserably at by allowing the thousands of criminal illegals , un vaccinated by the way and not likely to get vaccinated , free access to every corner of our country . Some bring in a host of diseases that we thought we eliminated rears ago . Way to go SLO-JOE .

noitall

Herd immunity ill happen. Mother Nature is in charge.

David Collins

Such a company pays no taxes directly . The people employed by the company do in their countries if there are income taxes . Equipment is taxed where purchased . The executives of the company are taxed here on direct compensation not stock . Most have paltry cash income but borrow against their stock holdings if cash is needed , no taxes on loans . Congress made up these rules and only Congress can change it . Do not hold your breath on that one . They are in on it and always have been .

The Cayman Islands have no direct income taxes or yearly property taxes . They do charge these money holding funds , hedge funds that open and shut down on a regular basis , an operating fee . That plus a island wide , three islands , consumption and importation fee . Works out just fine for them and keeps out the riff-raff . Most of it .

Jackie Gleason

This Opinion/Editorial (seems to be the same thing these days) is not about Corporate Taxes or how companies will eventually get around them. Mr. Kaplan is echoing the virus mantra that keeps giving. While we have to believe there is a virus (or something that is impacting people) we certainly know now that the virus has not been sequenced (meaning components of the virus factually identified). This is not fake news. The Chinese have never released exactly what they did when experimenting with this virus. The characterization of the virus is essentially a best guess based upon US and Chinese researchers on the civilian side of the lab in Wuhan. Just like a normal flu shot each year...sometimes the researchers get the flu variant correct, sometimes they don't. You just have to take the time to read the Wuhan papers to understand. They are available on line. I will not get into conspiracy theories of what the Chinese military did to that virus as there is no proof but certainly a lot of leads. Mr. Kaplan wants us to believe we should all get vaccinated with a "shot" that is not FDA approved and is only in Phase 2-3 trials. "Just do it to protect everyone". I did it but I am having second thoughts after continuing to read exactly how this unfolded. I should be able to freely say this but in this day and age of cancel culture forget the substance. My advice for Mr. Kaplan would be to let people make their own decisions. In five years when the emotions settle and the politics get taken away from the issue we will know a lot more about what we did right and wrong. Right now we have a Government that is "woke" to anyone who has something to say that fits their political leanings and the Governments political leanings are so far from center you have to do your own research to understand what's best for you.....not what is best for the Government or people wanting to make money.

mpjeep

The only folks more wrong than Dr. Fauci are weather folks.

David Collins

Good analogy . The weather like the virus is a moving target , ever changing . But , like the weather reporting these days it too is subject to politics . The Weather Chanel folks have totally bought into the rapid Climate Change scare . Seems like everyone lives to be scared these days . Happy in their fear driven misery .

drewski

Well like everything now a days there are just two schools of thought. Climate change hoax, climate change crises. Virus hoax, virus pandemic. In a choice between dr fauchi, and Laura Ingraham, or Tucker, my family listens to the cdc and fauchi.

Anyone care to bet those maga media types, fear mongering over vaccinations all got their shots?

Yed nugent was another big virus denier, he caught the crud and sings a very different tune now. Let's title it BAT SCRATCH FEVER.

David Collins

With all the hand wringing tearful hype , Martha Raditz style , about how the Covid 5.0 is spreading out of control amongst the un-jabbed, one piece of information is noticeably left out .

How many of them are actually US Citizens and how many are not . You know illegals , border jumpers as well as resident aliens , here for a time legally . If that information was aired it would shed new light on the issue . Perhaps bussing and flying these potential Typhoid Marys all about the country might well come down to one , if not the #1 , dumbest move ever made by a sitting president . Ain’t gonna happen in these times for politics reigns supreme over everything else . And , everything means everything .

David Collins

Only listen to CDC and Fauci . Like I said , this Covid thing is a moving target and a bit political , gotta please the boss and his handlers to keep that super high paying job , bet they stay confused with all the yes you can , no you can’t , wear two , no wear three and dance a jig at midnight in the rain on the third blue moon of the month . I listen to my physician and have done just fine .

More than one big mouth celebrity has ended up with his or her foot in mouth . Big deal , who cares . There are no real experts , just best guessers .

JusticeForAll

Trump is responsible for making Covid political. It is science that dictates the course we need to take. Everyone needs to make their own personal choice. Evolution wins in the end no matter what one chooses.

drewski

Glad to see in an article about the delta variant spreading rapidly among the unvaccinated we can get in clown princess, the woke, and those disease carrying brown people. Guess the irony of maga media working overtime to sicken their supporters is lost on some folks.

David Collins

News flash , Trump is no longer the president or relevant . It belongs to Biden and his clown princess where everything is political to the max . Time for the Woke to wake up . No other way to put it .

David Collins

It is also not lost on me that those silly idiotic Texas democrats that thought they would be so cute , board two chartered planes to flee the state unmasked and take selfies , all smiles of we showed them , are now down with the Covid . Not all but enough and the rest will have to be quarantined . Guess that case of beer did not deter infection . What a bunch of idiots . All on the taxpayers dime as well . Best of all , the democratic delegates that congratulated them upon arrival , some of them have tested positive . Can it get any better than that . Stupid gets what stupid does .

Staff
webeditor

This thread is now closed.

BananaThis

Seriously folks! Theres always gonna be something new from here on out to keep you scared and afraid and hate others for something they did or didn’t do. Trust God, Be brave, and have no fear! Keep on keeping on!

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