“Germany’s finance minister on Tuesday called for a ban on the so-called ‘patent box’ tax break offered by Britain, Netherlands and some other bloc members which he says results in unfair competition for foreign investment,” Annika Breidthardt reports for Reuters.
“Wolfgang Schaeuble told reporters he wanted European Union finance ministers to review the levying of lower corporate tax rates on profit related to innovations and exploiting patents,” Breidthardt reports. “Corporate tax avoidance has become a hot political topic with austerity-weary voters across Europe angered by revelations of tax avoidance by companies including Starbucks, Google and Apple in the past year.”
Breidthardt reports, “Schaeuble said ‘patent box’ schemes were at odds with EU rules designed to deter discriminatory tax rules. ‘We have to look at this practice and discuss it in Europe,’ he said. ‘That’s no European spirit. You could get the idea they are doing it just to attract companies.'”
MacDailyNews Take: Nooo, really? (dripping sarcasm)
“Governments which offer them say they encourage innovation and high-value jobs in research and development. Critics see the scheme as government-sanctioned tax avoidance,” Breidthardt reports. “Countries offering patent box-type regimes include Belgium, France, Hungary, the Netherlands and Spain, according to tax advisers Deloitte.”
Read more in the full article here.
MacDailyNews Take: The benefits of having a large corporation in your country or state go far, far beyond corporate taxes or even a total lack thereof. Those employees, who would not exist in your state otherwise, pay taxes – income, energy, property, etc., etc., etc. – and buy everything from food to furniture to vehicles in the local economy (each one of those purchases very likely taxed as well).
Those who whine about “corporate taxes” cannot see the forest for the trees.