In The News

Europe Pursues Digital Tax After US Pulls Plug: FT

Sam Fleming, Jim Brunsden, Chris Giles and Victor Mallet June 18, 2020
The United States walked away from global negotiations led by the OECD on a digital tax for multinationals, claiming an “impasse,” and threatened tariffs against nations that impose such taxes. “The move heightens transatlantic tensions, with the threat of more trade disputes as individual countries pursue their own taxation plans,” reports a team for Financial Times. “Robert Lighthizer, US trade...

Saudi Arabia Imposes Austerity Measures: WSJ

Stephen Kalin and Donna Abdulaziz May 11, 2020
Countries around the world have their hands full responding to the Covid-19 pandemic and cannot afford missteps in other areas. In early March, OPEC nations failed to reach agreement with non-OPEC nations to limit oil production, and Saudi Arabia responded by opening the pumps, forcing prices to plummet. The oil producers later reached agreement to limit production, but it was too late. Two...

US and EU Argue on Carbon Tax: Financial Times

Gillian Tett, Chris Giles and James Politi January 30, 2020
The European Union’s new tax plan on carbon imports may exacerbate transatlantic tensions. The Green Deal plan comes at the heels of France delaying imposition of a digital services tax, resisted by the Trump administration. According to Wilbur Ross, US commerce secretary, the United States could retaliate with tariffs if it finds the new carbon tax stems from trade protectionism. From the EU...

Build Better Globalization: Harvard Business Review

Kimberly Clausing December 20, 2019
People in advanced economies, worried by inequality and stagnant wages, are turning against globalization. But embracing nationalism, and blaming immigration and trade, may not help. Quick fixes could do more harm than good. Kimberly Clausing, author and economist, urges reviewing policies to support workers and communities and reform taxes to share the gains of economic growth. She also urges...

Macron and International Digital Tax: Reuters

Richard Lough December 6, 2019
France seeks an international tax on digital services like internet advertising. The United States has responded with proposed tariffs on French champagne, handbags, cheese and more. “The French leader is keen to reach an international agreement on taxing big tech companies and has urged the Trump administration to help reform global corporate taxes,” reports Reuters. “Internet giants … are...

Global Minimum Corporate Tax Rate: Financial Times

Chris Giles November 10, 2019
Multinationals can sell products and services in more than 200 nations, and many, especially big technology firms, shift profits across borders to minimize tax bills. The Organization for Economic Co-operation and Development, which represents democracies, is reviewing global tax policies: one recommendation would allow countries to tax operations even if the companies have no physical presence,...

Bahamas Defends Dorian Response

September 9, 2019
The Bahamas is a disaster zone after Hurricane Dorian, and this is a story of globalization in many ways: climate change, immigration, international aid and a global race to the bottom on taxation. The country reports widespread property damage and 45 deaths, with many more anticipated. Researchers suggest that climate change, due to the world’s reliance on fossil fuels, has intensified such...