US Retaliates Against Hungary For Obstructing 15% Global Minimum Tax, by Tyler Durden

Cartelization and price fixing are only bad when private companies do it, not when government does. From Tyler Durden at

In response to Hungary’s obstruction of the European Union’s adoption of a 15% global minimum tax on corporate income, the Biden administration on Friday announced it will terminate a 43-year-old tax treaty with the country. 

Hungary blocked the EU’s finalization of the 15% minimum tax scheme in June. Over the past dozen years, Hungary has slashed its corporate tax rate from 19% to just 9%.

In October 2020, 136 countries of the Organisation for Economic Co-operation and Development (OECD)—together representing more than 90% of the world’s GDP—agreed to move forward with the tax plan. Making it an actual reality, however, requires countries and economic blocs to pass legislation.

At the time of Hungary’s veto, the country’s finance minister, Mihaly Varga, hinted that Budapest could still be persuaded: “The work is not ready. I think we have to continue the effort to find a solution.”

That could be a veiled reference to something else entirely that Hungarian Prime Minister Viktor Orban is seeking: billions of dollars in loans and grants from the EU’s Covid-19 recovery fund. 

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