Historic decision forces corporations to pay minimum of 15% tax globally

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Multinational corporations such as Amazon, Facebook and Apple will now have to pay a minimum global tax of 15%. Even hiding their profits in tax havens won’t help. They will have to pay tax where they generate their profits, not where they produce or where they have their fictitious headquarters. This has been agreed by […]

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Historic decision forces corporations to pay minimum of 15% tax globally

Publicerad denFörfattareKontrast.at

Multinational corporations such as Amazon, Facebook and Apple will now have to pay a minimum global tax of 15%. Even hiding their profits in tax havens won’t help. They will have to pay tax where they generate their profits, not where they produce or where they have their fictitious headquarters. This has been agreed by 138 countries after years of negotiation. This global tax is now coming into force – a “reform of the century” on the road to fair taxation.
OECD countries and the G20 nations have been negotiating global tax justice for more than ten years. In 2021, 138 of the 141 countries agreed on a two-pillar reform; a minimum tax rate of 15% and a tax shift away from the place of production to the place where profits are made. The regulation will come into force in January 2024.
The basic idea is simple. If profits in tax havens are taxed at a higher rate, it pays less for companies to shift their profits there. This won’t only effect stereotypical tax havens such as the Caribbean islands, where there is often no corporation tax at all. Tax havens within the EU, such as Ireland with 12.5% corporation tax or Hungary with 9%, are also set to be hit.
“The principle of paying taxes where profits are generated is gaining acceptance and a common tax rate of 15 per cent puts a stop to destructive downward tax competition,” says Evelyn Regner. The MEP (Social Democratic Party of Austria) has been campaigning for fairer taxation of corporations at the European level for years.
Despite criticism that China and the USA are not on board, and that a global tax rate of 15% is too low, there has never been a comparable regulation before.
“For the first time in the history of taxation, states are being given the right to tax profits generated in other states according to agreed rules,” write tax experts Prof Dr Deborah Schanz and Dr Ulrike Schramm.

A MINIMUM TAX RATE OF 15 % COULD BRING IN AN ADDITIONAL 220 BILLION DOLLARS
The minimum tax rate will apply to all groups with an annual turnover of more than 750 million euros – regardless of whether the parent company or only one subsidiary is based in an EU member state. This affects around 7,000 to 8,000 companies worldwide and, according to OECD calculations, is likely to generate around 200 billion dollars in additional taxes.
For Austria, the tax office is expecting 100 million euros in additional revenue from 2026. According to economist and head of the tax department at the Vienna Chamber of Labour, Dominik Bernhofer, this could even amount to 200 to 300 million euros per year. In the long term, it could be even more, as there will be less profit shifting and tax competition. Together with his colleague Professor Matthias Petutschnig from the University of Vienna, Bernhofer looked at 19 of the largest Austrian companies. These include the cardboard group Mayr-Melnhof, banks such as Erste Bank and Raiffeisen, Vöst and Andritz. According to them, these 19 companies alone would have to pay a good 130 million euros more per year.
AUSTRIAN PEOPLE’S PARTY REPEATEDLY OPPOSED TRANSPARENCY DIRECTIVES AT EU LEVEL
Conservative and liberal governments in Europe have been resisting tighter taxes for corporations for years. The Irish government, for example, once declared that it did not want Apple to pay any back taxes, even though this would be necessary under EU law. Austria’s Austrian People’s Party (ÖVP) finance ministers are also taking part in the blockade games. Back in 2018, the then ÖVP Finance Minister Löger blocked tax disclosure by large corporations at EU level. His predecessor Schelling – also ÖVP – also blocked the EU’s planned financial reporting obligation for large corporations in 2016.
The Austrian parliament decided in 2019 that Austria should campaign for more transparency and tax disclosure, no matter who is finance minister in the future. Despite this decision, Austria abstained from another vote at EU level in 2021, once again preventing a push for greater tax transparency. The Finance Minister at the time was Gernot Blümel (ÖVP).
This work is licensed under the Creative Common License. In case of new republication, please cite Kontrast.at/Ingo Geiger as the Source/Author and set a link to the article in English: https://thebetter.news/global-minimum-tax-rate/

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Colombia strengthens regional economies and promotes cooperation instead of competition

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Latin America is emerging as the place to look for alternatives to the neoliberal economic system. In Colombia, the Gustavo Petro led government has spent the last year restructuring the previously isolated sector of small businesses and cooperatives. Petro wants to shift away from this model, and into a solidarity-based system.  The German-language Latin America […]

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Colombia strengthens regional economies and promotes cooperation instead of competition

Publicerad denFörfattareKontrast.at

Latin America is emerging as the place to look for alternatives to the neoliberal economic system. In Colombia, the Gustavo Petro led government has spent the last year restructuring the previously isolated sector of small businesses and cooperatives. Petro wants to shift away from this model, and into a solidarity-based system. 
The German-language Latin America news portal amerika21 reports that the establishment of a solidarity sector is intended to promote small domestic companies in Colombia. These companies include coffee producers, food vendors, artists and small businesses in the construction sector. The Colombian government has already initiated solidarity-based associations of micro-businesses in eleven regions, with a total of 33 of these projects planned. At a year-end meeting in Ibagué, 3,200 organisations celebrated the development of the solidarity economy in the country.
NEW ECONOMIC APPROACH: COOPERATION INSTEAD OF COMPETITION
The co-operatives, small businesses and small-scale farmers in the eleven regions have joined together to form so-called circuits. This means that, based on the interactions between their products and services, the businesses have also formed cross-sector networks. For example, the “Circuit for Industry, Trade and Tourism” has been created in the northern department of La Guajira and the “Circuit for Tourism and Renewable Energies” in the desert region of Tatacoa.
In the “Solidarity Network of Coffee” (Cafesol) in the department of Huila, small coffee farmers can now join forces instead of competing against each other.
PETRO WANTS TO FAVOUR COOPERATIVES FOR CONTRACTS
Last year, the government department for solidarity organisation in Colombia launched a project to create a solidarity sector. Initially, the department organised local meetings on the topic of the solidarity economy, where small-scale farmers, cooperatives and micro-enterprises could get to know each other and exchange ideas. Entrepreneurs were then trained to take on leadership positions in an educational programme. This enabled existing cooperatives to be strengthened and new cycles to be established.
President Gustavo Petro emphasises the strategic importance of the solidarity sector for the economy in Colombia:
“We want associations of small shopkeepers alongside the financial cooperatives. We want associations of small potato farmers who join forces to obtain subsidised loans so that they can begin the light industrialisation of their products.”
In addition, 30% of state contracts will no longer be carried out by large companies in future. Rather, they will be taken by joint co-operatives. This applies to projects such as road construction. The mergers of small companies therefore make it possible to complete larger contracts, which in turn generates more profit for the sector.
SOLIDARITY-BASED ECONOMY INSTEAD OF NEOLIBERALISM
The Colombian government under the presidency of Gustavo Petro shows that there are alternatives to the neoliberal model. Instead of emphasising competition, the economy is to be geared more towards a principle of solidarity by promoting the cooperative sector. The project suggests that it is possible to strengthen the local economy with the help of small businesses and cooperatives. With the development of a solidarity-based sector, small businesses can be maintained and further developed collectively.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast.at / Anna Drujan as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/colombia-promotes-economic-cooperation/

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Off the street and into a home: over 1,000 homeless in Austria get a flat

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An initiative by the Austrian Ministry of Social Affairs, non-profit building associations and the Federal Working Group for Assistance to the Homeless aims to get around 1,000 homeless people into housing by September 2024. To achieve this, Austria is adopting the successful “Housing First” concept. The basic idea is simple, homeless people are given their […]

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Off the street and into a home: over 1,000 homeless in Austria get a flat

Publicerad denFörfattareHarry Markham

An initiative by the Austrian Ministry of Social Affairs, non-profit building associations and the Federal Working Group for Assistance to the Homeless aims to get around 1,000 homeless people into housing by September 2024. To achieve this, Austria is adopting the successful “Housing First” concept. The basic idea is simple, homeless people are given their own home – with no strings attached. It has been found that the housing first method helps 80% of homeless people involved find their way back into society.
Austria is one of the ten richest countries in the EU and yet over 20,000 people have no home. They are homeless and living on the streets. Day in, day out, they struggle to survive, especially when winter hits. In order to help these people in the long term, Austria is now switching to the successful “Housing First” model. Experts have been calling for this for a long time. Finland, for example, has drastically reduced homelessness over the last ten years with this model.
AFFORDABLE RENTAL FLATS FOR OVER 1,000 HOMELESS PEOPLE
With the “Housing First Austria – arriving at home” initiative, the Ministry of Social Affairs wants to offer over 1,000 homeless people a new home in the long term. Instead of emergency accommodation or temporary solutions, they are to be given their own flat with a tenancy agreement.
By September 2024, 512 affordable flats are to be provided by non-profit building associations for this purpose. The project is being managed by the Bundesarbeitsgemeinschaft Wohnungslosenhilfe (BAWO).
The costs for financial support, relocation and deposits are to be subsidised by the Ministry of Social Affairs with a contribution of around 6.6 million euros. The formerly homeless people pay the rent and ancillary costs themselves.
Social workers will accompany and support those affected as required. They will help with personal crises, financial matters and coping with everyday life.
“HOUSING FIRST APPROACH”: FIRST YOUR OWN FLAT, THEN EVERYTHING ELSE
The “housing first approach” is quite simple. Homeless people are first given their own flat – with no strings attached. This means that they do not have to complete any addiction programmes, use any therapeutic services or have a job. All of that can wait.
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The approach is based on the assumption that people first need security and a place to feel safe. Only then will they gradually find their way back into life and society. This seems to be the case, as international examples such as Finland, Denver and Houston show. Studies show that 80% of formerly homeless people find their way back into a stable life through this method.
The concept is actually nothing new. It has been used by several organisations for years. These include Caritas Vienna, the Neunerhaus homeless aid organisation and various women’s shelters. Experts have long been calling for the government to facilitate the approach with the required level of financial backing.
THE HOUSING FIRST CONCEPT IS CHEAPER THAN HOMELESSNESS
Giving homeless people a new home is not only more humane, but also cheaper. This is because where people are in need, emergencies happen more often. Injuries, breakdowns, assaults and rescue operations. This not only places demand on the police, health and justice systems, but also costs money.
For the state, the “housing first” concept is more favourable than ignoring the problem of homelessness.
HOMELESSNESS IN AUSTRIA
Around 20,000 people in Austria have no home. The number of unreported cases is estimated to be much higher. This is because the system only registers those who seek help and are registered. The majority of them, almost 60 per cent, live in Vienna. Vienna’s homelessness organisation assumes that almost 4,000 of them are under the age of 30.
There are many reasons for homelessness, such as unpredictable misfortunes, accidents, addictions or mental health problems, to name just the most dramatic. But homelessness can be easy to fall foul of:
“It doesn’t take a stroke of fate to become homeless. Transitional phases are often enough: A young person who has to leave their parents’ home. A separation. An expiring tenancy agreement. Anyone who has no access to affordable housing in such situations runs the risk of becoming homeless,” explains Elizabeth Hammer, Chairwoman of BAWO.
Critics of homelessness assistance often blame the individual for their own homelessness. But that would be too simplistic. After all, high inflation, rising rents and the lack of affordable housing also contribute to people ending up on the streets. Some people can simply no longer afford to live. Läs mer…

Complete success for the 4-day week in South Africa: 90% of companies want to keep it

Publicerad denFörfattareRss .

South Africa has become the latest in a long list of 4-day week trialists. Here, the test run was a complete success. Not only the employees, but also over 90% of participating companies want to keep the reduced working hours with the same pay. This is in line with the global trend. However, one small […]

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Complete success for the 4-day week in South Africa: 90% of companies want to keep it

Publicerad denFörfattareKontrast.at

South Africa has become the latest in a long list of 4-day week trialists. Here, the test run was a complete success. Not only the employees, but also over 90% of participating companies want to keep the reduced working hours with the same pay. This is in line with the global trend. However, one small detail distinguishes the African country from previous tests – very few South Africans want to have Fridays off.
The test of the 4-day week in South Africa has been running since 1 March 2023. 28 South African companies and one company from Botswana took part. Most of them are in the IT, finance and recruitment sectors. But how exactly does a study like this work?
Essentially, employees only work four days a week instead of five, do the same work and receive the same salary. Unlike in most previous trials, each employee in the 29 companies was allowed to choose their own day off.
As in the previous tests, the results are consistently positive, both for the employees and for the companies.
RESULTS: LESS STRESS & BURNOUT AND MORE JOB SATISFACTION
After around six months, the first results are now available. These are similar to the results of trials already carried out in other countries. The employees report that they were:
– less stressed
– sick less often
– enjoyed going to work more than before the trial
The mood of trialists had also improved at home as a result of the reduction in working hours. The frustration and stress normally induced by a long week were not taken home from work.
The participating companies are also satisfied, as productivity has remained the same. In the long term, it could even increase as a result. This is because staff turnover fell during the test phase, i.e. fewer employees left the company during this time. This means that the company’s expertise and experience is retained.
Around 92% of the participating companies plan to retain the 4-day week. However, there is one peculiarity that distinguishes South Africa from fellow trialists. While employees in other countries mostly want Fridays off, it is not so clear in South Africa. Only around a quarter of them took Fridays off.
TEST OF THE 4-DAY WEEK IN SOUTH AFRICA IS PART OF A GLOBAL SERIES OF EXPERIMENTS
The study is part of a whole series of tests being carried out by the non-profit organisation “4 Day Week Global”. It has already been successfully implemented in several countries around the world, including Australia, Spain, Japan, the UK and Iceland. The results have been consistently positive.
Iceland is one of the first countries to de facto introduce the 4-day week following a successful test. The reduction in working hours is already a reality for almost 80% of Icelanders.
THE 4-DAY WEEK IN AUSTRIA?
In contrast to South Africa, a 4-day week test has yet to be carried out in Austria. Nevertheless, there are already some companies that have switched to the 4-day week on their own. For example, the Upper Austrian IT company Tractive. A detailed list of companies that have already opted for shorter working hours in Austria can be found here:
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast.at / Ingo Geiger as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/4-day-week-south-africa/

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The Swedes defy Elon Musk and bring Tesla to a standstill.

Publicerad denFörfattarethomas

The Swedes have brought Tesla to a standstill. Billionaire Elon Musk’s company refuses to negotiate with the Swedish union over wages and working conditions. As a result, 120 Tesla mechanics went on strike. Workers in transportation, postal services, cleaning, and other industries quickly joined the strike. Now, the strike could potentially spread to other European countries.
Elon Musk is far from a friend of labor unions. The billionaire and CEO of Tesla and X (formerly Twitter) have been cracking down on worker organizing in his companies worldwide. Union members at Elon Musk’s companies are fired, and their activities are spied upon.
This anti-union policy is now being pursued by the billionaire in Sweden as well. However, Swedish unions are not backing down. What started as a conflict between Tesla management and 120 Swedish workers has now paralyzed the company. The likelihood of the conflict expanding to other European countries is increasing.
Musk is against collective bargaining agreements
In Sweden, as in most European countries, wages and working conditions are regulated by collective bargaining agreements. Unions negotiate a contract with management that applies to all employees.
Musk and Tesla, however, do not support such collective bargaining negotiations. Those who want to work at Tesla must negotiate wages and working conditions individually with management. The result for most Tesla employees is that they earn less than their counterparts in other companies in the industry.
Tesla is in constant conflict with labor unions. However, the electric car company is likely to face a tough challenge from Sweden’s labor unions. Foto (unsplash)
This is also the case in Sweden. There, 120 mechanics in Tesla’s Swedish subsidiary are said to earn less than the industry average and have worse pension and insurance conditions. For years, the Swedish Metalworkers’ Union has been trying to convince Tesla to sign a collective bargaining agreement to address this issue. However, the company has not budged, leading the 120 Tesla mechanics to go on strike.
Post, transportation, suppliers – no one wants to work for Tesla anymore
The 120 mechanics, however, were not alone for long. Dockworkers supported the Tesla workers and blocked the import of new Tesla vehicles through the country’s ports. Workers at a Tesla supplier, Hydro Extrusions, which manufactures aluminum components for Tesla, are also now supporting the strike. Production has come to a halt until Tesla meets the demands of its workers.
Taxi drivers, cleaning staff, and painters have also joined the strike. Stockholm’s largest taxi company no longer buys Teslas for its fleet, cleaning staff refuse to clean Tesla buildings, and painters refuse to repaint Teslas.
Cleaning staff, in solidarity with the striking Tesla mechanics, refuse to clean Tesla’s buildings.
However, Tesla is particularly affected by the actions of the state-owned postal company, Post Nord. In Sweden, vehicle license plates are only sent from a central location: Post Nord. Post employees are now refusing to send license plates for Tesla. You can still buy a new Tesla in Sweden, but you can’t drive it. Tesla is now seeking a court ruling to have license plates delivered for their cars.
Musk calls strike “insane”
Elon Musk and Tesla have remained silent on the strikes in Sweden so far. However, when postal workers joined the strike, he commented on X (formerly Twitter): “This is insane.”

This is insane
— Elon Musk (@elonmusk) November 23, 2023

Tesla is reportedly planning to fly in workers from other countries to undermine the strike. The head of the Metalworkers’ Union, Marie Nilsson, commented on this, saying, “We haven’t seen anything like this in Sweden since 1937 or so.” The following year, 1938, is considered the beginning of the Swedish social partnership.
The unions won’t back down, according to the head of the Swedish Trade Union Confederation, Susanna Gideonsson:
“It will end with the employees getting a collective agreement in one way or another.” When asked what would happen if Tesla doesn’t sign a collective agreement, she replied: “Then Tesla can leave the country.”
First Sweden, then Europe?
The strike in Sweden could end disastrously for Tesla. Unions in Norway have already announced their intent to prevent Teslas from entering Norwegian ports and being transported to Sweden by land. The strike could also spread to Denmark. Post Nord, the state-owned postal company that does not send Tesla license plates in Sweden, operates in the neighboring country as well.
However, the biggest threat to Tesla lies in Germany. In 2022, the company opened a large factory with around 11,000 employees (according to Tesla) there. This factory produces the majority of Teslas for the European market. Similar to Sweden, Tesla is refusing to negotiate with unions in Germany over wages and working conditions.
The factory in Germany reportedly has a high number of workplace accidents. Employees also criticize significant work pressure and the lack of safety and health precautions.
Elon Musk is facing increasing pressure
The Tesla CEO is already under significant financial pressure. His acquisition of Twitter (now X) did not go as planned. The social media platform has lost thousands of users in recent months and has been plagued by negative press, including massive layoffs. Musk largely financed the purchase of Twitter with Tesla shares.
However, things are not going well for Tesla either. The production of the new Cybertruck model is facing significant challenges. Thousands have already pre-ordered the Tesla pickup truck, but due to rising raw material prices and planning issues, Tesla seems unable to fulfill the orders.
“With the Cybertruck model, we’ve dug our own grave,” Elon Musk told investors.
There are also problems with existing models. Tesla had to recall 55,000 cars just last month. In addition, Tesla is being investigated for fraud. Tesla is accused of misleading customers and potential buyers about the ability to use the autonomous driving mode.
If the strike in Sweden spreads to other European countries, it will further increase the political and financial pressure on Tesla and Elon Musk. Läs mer…

The Swedes defy Elon Musk and bring Tesla to a standstill.

Publicerad denFörfattareRss .

The Swedes have brought Tesla to a standstill. Billionaire Elon Musk’s company refuses to negotiate with the Swedish union over wages and working conditions. As a result, 120 Tesla mechanics went on strike. Workers in transportation, postal services, cleaning, and other industries quickly joined the strike. Now, the strike could potentially spread to other European […]

The post The Swedes defy Elon Musk and bring Tesla to a standstill. appeared first on scoop.me.

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