politics

G7 Nations Agree on Minimum Corporate Tax

- Adam Clare
money

Corporations love keeping their shareholders money instead of contributing to society, and it’s the role of governments to ensure that corporations do their part. Usually this comes in the form of taxation. Multinational corporations create multiple subsidiaries to obfuscate and obstruct the ability of governments to collect tax, it’s the corporate equivalent of dining and dashing.

A recent G7 meeting revealed that the largest economies in the world are going to enact a global minimum taxation rate for corporations. Having an agreed-upon minimum will remove the incentive to corporations to create subsidiaries to avoid taxation, while increasing the wealth of nations.

The rules on making multinationals pay taxes where they operate – known as “pillar one” of the agreement – would apply to global companies with at least a 10% profit margin. 

Twenty percent of any profit above that would be reallocated and taxed in the countries where they operate, according to the G7 communiqué. 

In the case of the UK, for example, more tax revenue would be raised from large multinationals and would help pay for public services.

The second “pillar” of the agreement commits states to a global minimum corporate tax rate of 15% to avoid countries undercutting each other.

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Three Years of Privacy Thanks to the GDPR

- Adam Clare

computer screen
Three years ago today the General Data Protection Regulation (GDPR) was enacted in the EU to protect you from morally questionable digital surveillance, and trust me, we’re all better off for it. Essentially the GDPR stops large companies from tracking you across the web and using that information to change your behaviour. When companies are collecting data they must disclose what they are collecting and why, plus they need to ensure that the data is well protected.

The immediate success of the GDPR led other jurisdictions to follow with similar policies to protect people, including in Japan, Chilie, Kenya, and more.

Over the BBC they cheekily posted a list of the biggest offenders of the GDPR (which shows why the legislation is needed).

4. H&M (35.3m euros)

H&M was fined by German regulators in 2020 after it was found to have been secretly monitoring hundreds of its employees.

If workers took holiday or sick leave, they were required to attend a meeting with senior staff at the retail giant on their return.

These meetings were recorded, and made accessible to H&M managers without the knowledge of staff.

The data collected from the interviews was used to make a “detailed profile” of workers, which then influenced decisions concerning their employment.

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Carbon Pricing in Canada is Constitutional

- Adam Clare
Phramacy

A few years ago the federal government in Canada started charging for carbon wastage by people and companies. The 2018 Greenhouse Gas Pollution Pricing Act was passed to ensure that every province in Canada is doing the bare minimum to avoid catastrophic climate change. This led Conservative leaders of a couple provinces to challenge the government’s ability to do this (yes, the same Conservative party which recently decided to not acknowledge climate change, and the same Ontario Conservative government which paid millions of dollars to illegally break a cap and trade business deal with California and Quebec, sigh). The Supreme Court of Canada ruled in favour of the federal government’s approach to reducing carbon emissions by putting a price on carbon.

Carbon pricing isn’t taking direct climate action, but it’s a good step in the right direction and signals to the world that Canada is at least willing to do something.

The full impact of this ruling will be felt over the coming years as this opens up more climate-friendly action and cases to move forward.

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Ithaca New York Provides a Model to Defund the Police While Supporting the Police

- Adam Clare

I find it baffling that the same organization which investigates murders also spends their time directing traffic. Others find this problematic too. Thanks to the strong efforts of Black Lives Matter over the past years (and in Canada let’s not forget Idle No More) calls to defund the police by reallocating funding to services which help people have grown substantially. Many cities are noticing vast improvements in their communities once they change which departments they fund, and now Ithaca is looking to do the same. The approach that Ithaca is taking may be one of the most noteworthy yet.

“IPD currently spends one third of its time responding to calls for service that essentially never lead to arrests,” Myrick writes in the report’s introduction. “Those calls, as well as a majority of patrol activity, can and should be handled by unarmed Community Solution Workers well trained in de-escalation and service delivery. This will allow our new Public Safety Workers to focus on preventing, interrupting and solving serious crime.”
…
Now, he’s investing his political capital in a plan that would remove armed officers from most civilian interactions, which he said should free those who remain to fully investigate and solve serious crimes. “The investigators are going to be focused on the shooting last Tuesday, they will have nothing on their plate except finding that gun, finding that shooter and taking them off the street,” he said. “They won’t be pulled away from that work by a motor vehicle crash on 3rd Street or a welfare check on Madison.”

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Evidence is in: Green Policies Improve Economic Performance

- Adam Clare
tree with climate knowledge

Short-term thinkers who put quarterly profits above all else consistently argue that caring for the environment destroys business. They are wrong. The evidence keeps growing that planet (and people) friendly policies encourage economic growth while also forcing companies to increase their efficiency. It’s a win-win for businesses and the planet.

An Italian team of economists have concluded that by taxing companies, and individual behaviours, that damage the environment create great success for the planet and profits.

Green taxes, or taxes levied on businesses and individuals in order to promote environmentally friendly practices, had the largest impact on multifactor productivity, though De Santis and her colleagues wrote that green taxes need to be paired with complementary redistributive policies, such subsidies and grants for companies transitioning to environmentally friendly practices, in order to avoid damaging productivity.

“What is clear is that you have to face this increasing environmental policy stringency, and as a firm, probably the best is if you try to create this win-win solution so it’s passed through an improvement in technology,” De Santis said.

Read more.

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