“In the playground, there is a little brute and we let it do”

What was your reaction to learning that the G7 (France, United States, United Kingdom, Germany, Japan, Italy and Canada) will exempt US multinationals from the minimum world tax (IMM) of 15 %?

It can be seen in two ways. In addition, First. Moreover, this G7 agreement preserves the minimum world tax when many observers thought that the Americans were going to kill him. However, But, at the same time, he exempts American companies … Furthermore, It is a violation of all the principles, so there is a bit bitter flavor.

This IMM mainly aimed at American companies, including digital giants (Google, Apple, Amazon, etc.). However, If they are no longer affected in the G7 countries, is this tax not emptied of its substance?

The digital giants were “in playground, there little brute targeted, but it’s not just them. In addition, The current economy is characterized by annuities made by companies that have intangible assets, intellectual property, the brand … The IMM aims to stop the race at the lowest tax for these large companies. which make phenomenal profits fairly easily relocatable. And of course, American companies were in the target heart.

Can we say that the text is emptied of its substance? Three remarks. One: the tax havens that welcomed part of the overprosses of these large American companies. and others, can now take the IMM, and most do it. Two: the United States is not a tax haven. and it already applies a minimum world tax, even if it is not as strong. Three: it is not just American companies, all the others will remain submitted. But we are not going to say that this G7 agreement is a victory for “in playground, there little brute tax justice because it is at the cost of positive discrimination for the benefit of the United States. which does not need it …

The other six G7 countries have exempted American companies under the threat of a “avenging tax”, brandished by Washington. Donald Trump threatened, the G7 capitulated …

Europe had a unique moment to build and pose in power and it is missing it. Europeans can boast of having succeeded in saving the minimum world tax. but it is at the cost of having, not humiliated but lying in front of this American pressure.

This is the illustration of the fact that at the moment, the law of the strongest is always the best. Europe is supposed to rise against this principle but alas, for the moment, we do not see it enough. It is not only on taxation but also on trade, on defense expenses … In “in playground, there little brute the playground, there is a “bully” (“little brute”, in French) and we let it do …

Would have had to start an showdown?

It’s hard to say. This agreement is not very good but it could have been worse. I find that the way we give reason to the Americans is not the right one. But one day. Trump will no longer be there and we will not have completely dismantled an important achievement obtained by the OECD …