Here comes the Taxman

Governments make it rain [Click to view in browser](. Good afternoon, Congress can’t agree on much, but apparently, the world can. [Best Christina And Will GIFs | Gfycat] The group of seven, not to be confused with the hall of justice, backed a proposal for a global 15% minimum tax on earnings. Digging into the details Companies work like water, moving through the path of least resistance. They’ll set up shop in various countries to optimize their tax advantages where possible. Heck, we see that from state to state as well. Although President Biden pushed for higher, 15% represents a historic agreement, setting up momentum for talks with 135 countries in Paris. The framework amounts to 20% of profit exceeding a 10% margin for the ‘largest and most profitable multinational enterprises’ as well as a minimum 15% tax on a country by country basis. Positive reactions overall Not everyone supports the minimum tax. Irish Finance Minister Paschal Donohoue argued that smaller nations should be allowed lower taxes given that they don’t have the capacity for large-scale economies. Nonetheless, this solves a thorny issue of a European digital tax. During the previous administration, President Donald Trump opposed digital taxes, even threatening tariffs. Ironically, Facebook (FB) lauded the decision as overdue, lending much-needed certainty for businesses. Even Google (GOOGL) issued a warm response. Easier said than done Implementing a global minimum tax isn’t easy. Countries learned ways to shuffle money around, subsidizing industries away from public view. And chances are not everyone will sign up. The United Arab Emirates (UAE), for example, has no income tax as well as levy any withholding tax or corporate income tax. Even individual state tax incentives could be seen as undermining the agreement. The pandemic put countries in a revenue bind. They need ways to replenish coffers. Given the complexity of such an arrangement, implementation will take years, if not the better part of a decade to ramp up. Incremental tax payments are expected to be between $275 and $400 million each year. Our hot take The agreement only affects certain companies. Which those are remains open for debate. While the idea itself is sound, it may take decades to find an equilibrium. As we ramp into June, here are some other great articles to keep you informed. Power Plays [5 Best Dividend Stocks to Buy According to Billionaire James Dinan]( In this article we discuss the 5 best dividend stocks to buy according to billionaire James Dinan. If you want to read our detailed analysis of Dinan’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire James Dinan. [Read More]( [5 Best Growth Stocks for the Next 10 Years]( Below is the list of the 5 best growth stocks for the next 10 years. 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