{"text":[[{"start":12.74,"text":"Attempting to fix the broken international corporate tax system is a Sisyphean task. "},{"start":17.732,"text":"But a new model for taxing multinationals put forward by the Biden administration could put the brakes on decades of plummeting tax rates and aggressive planning. "}],[{"start":26.79,"text":"The US blueprint features a 21 per cent global minimum corporate tax rate and a proposal to reallocate some tax paid by the largest, most profitable companies to countries where they make their sales. "}],[{"start":38.56,"text":"It is similar to ideas kicked around by the OECD in recent years. "},{"start":42.927,"text":"But the push to redistribute a slice of tax revenues would apply to a broader group of businesses. "},{"start":48.094,"text":"That is likely to make the policy more palatable to US lawmakers as it would no longer discriminate against US digital companies. "}],[{"start":56.160000000000004,"text":"The model would also defuse the international row over digital taxes fuelled by the imposition of national levies in the UK, France and elsewhere. "},{"start":64.427,"text":"That would be a relief to some US tech companies, though others such as Microsoft might be losers. "},{"start":69.632,"text":"While digital taxes home in on its LinkedIn subsidiary, its entire business is likely to be in the scope of the US proposal. "}],[{"start":77.38,"text":"Just as radical is the US bid to put a stop to tax competition, by encouraging its peers to adopt a high minimum tax rate. "},{"start":84.65899999999999,"text":"That would hit countries such as Ireland, where US multinationals play an outsized role. "}],[{"start":90.56,"text":"Success is not assured. "},{"start":92.614,"text":"Getting the plan through the US Congress will be a challenge. "},{"start":95.732,"text":"Internationally, co-operating over tax rates would mean breaking a decades-old habit of competing for company headquarters. "},{"start":102.137,"text":"Much horse-trading will be needed to reach agreement. "},{"start":104.82900000000001,"text":"Expect the minimum rate to be toned down, from the mooted 21 per cent to perhaps 17 per cent or so. "}],[{"start":111.81,"text":"Nonetheless, the US has enough clout to engineer a deal. "},{"start":115.75200000000001,"text":"The revenue raised is likely to be about $100bn — or 4 per cent of global tax revenues — shouldered by at most 200 businesses. "},{"start":123.894,"text":"For companies like Alphabet, this would be significant. "},{"start":127.062,"text":"Its effective tax rate averaged only 14 per cent over the past three years. "}],[{"start":132.46,"text":"The decision to concentrate tax rises on a relatively small group is a recognition of the winner-takes-all nature of the global economy. "},{"start":139.727,"text":"Governments have struggled to assert themselves against the might of multinationals. "},{"start":143.832,"text":"These measures, if adopted, would signal a shift in the balance of power. "}],[{"start":149.22,"text":"What do you make of the new US tax plan? "},{"start":151.949,"text":"Please tell us what you think in the comments section below "}],[],[{"start":156.09,"text":""}]],"url":"https://creatives.ftacademy.cn/album/001092093-1617950940.mp3"}