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Will tech giants be taxed for worldwide profits with a global tax rate?

Get insights on the latest news about emerging trends in cyberspace from Marietje Schaake, International Policy Director at Stanford University's Cyber Policy Center and former European Parliamentarian:

Today, we talk about the "T word", as I often refer to: taxation. But that taboo is finally broken in the United States.

How would a global minimum corporate tax rate, like the one Janet Yellen has called for, affect Big Tech?

Now, ideally, it would ensure a level playing field for all companies, and European leaders embrace the US change of course, but they did add that there should be ways to tax tech giants for their global profits. It's a demand that is widely shared in Europe. So the hope is that that can be arranged between all OECD members.

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The Graphic Truth: What companies actually pay in taxes

On top of the global debate about enacting a minimum global tax for multinational corporations, there's another growing movement in a host of countries for all firms to pay their fair share in taxes, whether they do business abroad or not. Many US corporations are notorious for getting away with paying little to no federal taxes by taking advantage of multiple loopholes in the tax code — which is true for a lot of them. However, as a whole the average percentage of income US corporations do pay taxes on — their effective tax rate — is in reality not much lower than the legal national rate due to additional taxes levied by some US states and cities — the same as in many other developed economies. We compare the official and the effective corporate tax rates in some nations around the world.

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