The Biden cabinet wants to put pressure on the Hungarian leadership by terminating the convention stating the avoidance of double taxation.
The editorial of the American right-wing paper talks about the fact that the left-wing Joe Biden administration is now trying to exert pressure on the Hungarian leadership by terminating the double taxation treaty, after Budapest has for the time being thwarted the plan for a single tax on multi-nationals, the global minimum tax.
The timing shows that this is retaliation, writes the editorial, asking whether,
but why would Hungary accept the fifteen percent tax when, in order to attract investments, the corporate profit tax is currently nine percent?
The French, the Germans and others expect an increase from him because they hate tax competition, the newspaper believes, even though Ireland has already proven with its 12.5 percent tax that this strategy can be very successful.
The evaluation cites the letter to readers published the other day by Balázs Orbán, political director of the Hungarian Prime Minister, according to which, during the epidemic and war, rivalry should not be restricted, nor should another burden be placed on the shoulders of companies that fundamentally influence growth.
So the attempt to terrorize does not look good on the part of a country that promotes international cooperation, wrote the Hungarian politician.
Meanwhile, the new system would not bring financial benefits for the USA, the editorial points out, and the Republicans are not willing to give up even a single piece of national authority in tax matters. Also the French and the Chinese. They will probably torpedo the agreement, which would then be good for everyone, except for the European and American politicians who crave more income - read the editorial, which was seen by HVG.
Source: mandiner.hu
Featured image: GettyImages
