U.S. to terminate treaty with Hungary over resistance to global minimum tax

[Martin Everson]

https://www.msn.com/en-us/news/worl...gary-over-resistance-to-global-tax/ar-AAZoLNy
--- quote start

The Biden administration on Friday said it will terminate its four-decade-old tax treaty with Hungary over that country’s resistance to implementing a global minimum tax, as the United States seeks to create a global tax floor for large multinational corporations.

In a statement on Friday, the Treasury Department said the United States is ending the treaty with Hungary because “the benefits are no longer reciprocal,” citing a loss of tax revenue for the United States and little return for American investment in the country. Hungary, which has one of the lowest corporate tax rates in Europe, is currently blocking the European Union’s implementation of the global minimum tax agreement. World leaders have agreed on a 15 percent corporate tax floor, championed as a top priority by Treasury Secretary Janet L. Yellen. Hungary’s corporate tax rate is 9 percent. Each country in the European Union has veto power over the bloc’s tax agreements, and every other E.U. member country supports the proposal.

GOP officials back Hungary’s resistance to global tax deal, bucking Biden “The United States, across administrations, has had long-held concerns with Hungary’s tax system and the Hungary treaty,” the Treasury statement said. “We discussed these concerns with Hungary starting last fall, but are taking this step due to a lack of satisfactory action by Hungary to remedy these concerns.”

--- quote end

 

[marioIT]

lol they were a tax haven for decades and now are complaining
I still remember when everyone and their dog rushed to get USA green cards, long term visas and citizenships, nowadays it feels REALLY good not having them...

 

[RealDude]

2023 will be an interesting year in terms of global tax legislation.

 

[Marzio]

Curious to see if they will go ahead and termine the treaty.

 

[Martin Everson]

Interesting insight below.

https://bbj.hu/business/people/insi...eased-tax-burdens-for-u-s-hungarian-taxpayers

 

[Marzio]

If it ends it will end from 2024. Hungary has a lot to loose either by loosing the treaty or accepting minimum global tax

 

[Golden Fleece]

That is a highly ironic development, as the U.S. itself may not be able to enact legislation to implement a global minimum tax.

The US Senate has an increasingly narrow path forward after Senator Joe Manchin said he wanted to wait until September to consider a bill that included committing to a 15% global minimum corporate tax, the cornerstone of a deal that Treasury Secretary Janet Yellen helped negotiate with nearly 140 countries last year.

Time is running out as Democrats only have until Sept. 30 to use the fast-track budget reconciliation process to pass the bill without the help of Republicans. With control of Congress at stake in November’s midterm elections, Republicans have already said they’ll let the current deal die if they regain power.

https://www.msn.com/en-us/news/poli...sedgntp&cvid=f3c8ec037b1f4d6a9c1b4e629854c423

 

[Golden Fleece]

There we go! The 50th Democratic senator (out of 100 U.S. senators) needed to enact the 15% minimum tax on multinational corporations has announced his opposition. It will not pass this year. If the Republicans take control of the U.S. Senate this November (odds are about 50/50), then the legislation is dead until 2025.

Sen. Joe Manchin, D-W.Va., refused to back congressional Democrats' economic package partly due to a provision that would impose a 15% minimum tax on multinational corporations.

https://www.newsmax.com/newsfront/j...kage-international-tax/2022/07/18/id/1079243/
Meanwhile, the moronic Biden Administration is messing with Hungary for no reason. Talk about absurd.

 

[Marzio]

United States’ Notification of Termination of 1979 Tax Convention with Hungary

https://home.treasury.gov/news/press-releases/jy0872

 

[RealDude]

Will everything be taxed twice now?

 

[Marzio]

Will everything be taxed twice now?

If nothing changes termination will be effective on January 8, 2023. However, as specified in the Convention, with respect to taxes withheld at source, the Convention shall cease to have effect on January 1, 2024.

 

[lacomaco]

Will everything be taxed twice now?

In a Double-tax treaties several types of income can be taxed in both countries, foe example dividends

There we go! The 50th Democratic senator (out of 100 U.S. senators) needed to enact the 15% minimum tax on multinational corporations has announced his opposition. It will not pass this year. If the Republicans take control of the U.S. Senate this November (odds are about 50/50), then the legislation is dead until 2025.

https://www.newsmax.com/newsfront/j...kage-international-tax/2022/07/18/id/1079243/
Meanwhile, the moronic Biden Administration is messing with Hungary for no reason. Talk about absurd.

This termination affects US taxpayers much more than Hungarians as the US obviously has much more investment in Hungary than vice versa… Quite surprisingly this “tax expert” does not even mention the biggest problem facing US investors which is that Hungary could become a CFC country… BTW Pillar 1 and Pillar 2 of the global 15% tax rules are not finalized yet, so this termination is just a polititical warning to others to behave

 

[Marzio]

Orban should give up on his fight and let US think he is bending to US will and power because until Joe Manchin will give his vote, the global tax will not pass anyway.

 

[Martin Everson]

United States’ Notification of Termination of 1979 Tax Convention with Hungary

https://home.treasury.gov/news/press-releases/jy0872

Well Hungary will gain nothing from reversing course now to please U.S. I guess. Plus China will step in now anyway .

Chinese, Hungarian FMs hold phone talks on bilateral ties, Ukraine​

https://global.chinadaily.com.cn/a/202207/18/WS62d4c517a310fd2b29e6ce75.html

 

[Martin Everson]

Proposed U.S. corporate tax hike won't save global minimum tax deal​

https://www.msn.com/en-us/money/mar...wont-save-global-minimum-tax-deal/ar-AA10BlTl
@Golden Fleece Props you were spot on


P.S The hypocrisy of the U.S. They terminate tax tax treaty with Hungary over their resistance to global minimum tax and then fail to implement it themselves .

 

[Golden Fleece]

P.S The hypocrisy of the U.S. They terminate tax tax treaty with Hungary over their resistance to global minimum tax and then fail to implement it themselves .

That stems from the continuing utter incompetence of the Biden Administration. Just to provide a second example, on his first day in office President Biden (selling out to the "environmental" lobby) signed multiple executive orders that immediately turned the U.S. from a net oil exporting country to a net oil importing country. Of course, that is the also the single largest factor that caused rampant inflation in the U.S. -- because energy costs impact every area of commerce and industry.

 

[hernanday]

There we go! The 50th Democratic senator (out of 100 U.S. senators) needed to enact the 15% minimum tax on multinational corporations has announced his opposition. It will not pass this year. If the Republicans take control of the U.S. Senate this November (odds are about 50/50), then the legislation is dead until 2025.

https://www.newsmax.com/newsfront/j...kage-international-tax/2022/07/18/id/1079243/
Meanwhile, the moronic Biden Administration is messing with Hungary for no reason. Talk about absurd.

Dam, just passed in the Inflation Reduction Act.
Now Brandon will spend the next few years harassing the few tax havens into paying 15%!

That stems from the continuing utter incompetence of the Biden Administration. Just to provide a second example, on his first day in office President Biden (selling out to the "environmental" lobby) signed multiple executive orders that immediately turned the U.S. from a net oil exporting country to a net oil importing country. Of course, that is the also the single largest factor that caused rampant inflation in the U.S. -- because energy costs impact every area of commerce and industry.

Brandon is incompetent, but this is patently untrue.

The inflation is global and caused by Brandon and EU waging global economic jihad on the arguably 3rd largest economy in the world who provides almost all the surplus base input goods.

Ban Russian oil, when the rest of the world didn't even have the capacity to make up the difference. People say "but the Saudis can pump more", actually, no they can't, they could in theory, but not in practice, as they already near maxed out their oil output based off the plants and pipelines they had and processing ability. Even if the Saudis were to drill more wells that hit oil tomorrow, they could not get it to market, as they were advised for decades by Western experts to Max out the capacity of processing they had to minimize cost. So they'd need to build new pipelines, new giant drums for processing, etcetera.

Ban Russian gas but no one can make up for it, even the entire global supply of liquid natural gas is exhausted and the Germans can't even import all of their needs from USA, b/c they don't have enough plants, docks, and ships, and supply processing to absorb this volume by boat.

All of these lead to severe shortages in the global market, spiking prices, and companies are greedy and see it as an excuse to spike prices and gouge b/c they can.

 

[Golden Fleece]

Dam, just passed in the Inflation Reduction Act.
Now Brandon will spend the next few years harassing the few tax havens into paying 15%!

No, the global minimum tax was not included in the Inflation Reduction Act. The tax that Congress enacted is not a universal tax, but applies to only about 200 of the largest corporations that earn more than $1billion in profits. Everyone here is interested in how it would impact them and their small businesses. The Biden Administration does not have the leverage to force a universal global minimum tax on other nations, because the U.S. has not imposed one on itself.

Companies that make more than $1 billion a year will now have to pay a minimum tax rate of 15% as well as 1% on stock buybacks.

https://www.cnbc.com/2022/08/16/bid...ke-wont-be-material-to-most-us-companies.html

Brandon is incompetent, but this is patently untrue.

The inflation is global and caused by Brandon and EU waging global economic jihad on the arguably 3rd largest economy in the world who provides almost all the surplus base input goods.

Ban Russian oil, when the rest of the world didn't even have the capacity to make up the difference.

No, you are dead wrong. Significant inflation began in the U.S. well before the Russian invasion of Ukraine. That was the result of the Biden Administration's war on fossil fuels. In 2021 alone, well before the Russian invasion of Ukraine, inflation in the U.S. rose from about 0.5% to 4.5%. That was a massive increase -- and more than half of the 8.5% inflation that we experience today.
https://www.statista.com/statistics/191077/inflation-rate-in-the-usa-since-1990/

 

[lacomaco]

No, the global minimum tax was not included in the Inflation Reduction Act. The tax that Congress enacted is not a universal tax, but applies to only about 200 of the largest corporations that earn more than $1billion in profits. Everyone here is interested in how it would impact them and their small businesses. The Biden Administration does not have the leverage to force a universal global minimum tax on other nations, because the U.S. has not imposed one on itself.

https://www.cnbc.com/2022/08/16/bid...ke-wont-be-material-to-most-us-companies.html

No, you are dead wrong. Significant inflation began in the U.S. well before the Russian invasion of Ukraine. That was the result of the Biden Administration's war on fossil fuels. In 2021 alone, well before the Russian invasion of Ukraine, inflation in the U.S. rose from about 0.5% to 4.5%. That was a massive increase -- and more than half of the 8.5% inflation that we experience today.
https://www.statista.com/statistics/191077/inflation-rate-in-the-usa-since-1990/

Unlimited money printing and COVID?

 

[Golden Fleece]

Unlimited money printing and COVID?

Read up on how energy prices impact absolutely everything else. Read up about all the plastics and other goods made from petroleum. Fertilizer and food are nothing more than derivatives of energy – rather important ones at that – and energy is indeed life, and the absence of energy is death. When energy prices rise, the price of everything else rises.

As I stated earlier, on his first day in office President Biden (selling out to the "environmental" lobby) signed multiple executive orders that immediately turned the U.S. from a net oil exporting country to a net oil importing country. That is no exaggeration.

In January 2021, his first week in office, Biden suspended all drilling on new oil and gas leases.

https://www.newsmax.com/newsfront/judge-oil-leasing/2022/08/19/id/1083805/