(Global Tax Deal, in Bed with Mrs Market, Part 5)
by A. Irmanputra Sidin, PhD in Constitutional Law/ Constitutional Lawyer
Jakarta, February, 9, 2025
All laws from every countries should decide in political nuances with the real interests at that time. So every countries could not forced a new laws and policy to overseas businesses which operated significant market in their territory through technology, even if they have no physical presence. Exception, if the countries hold bargaining position to refuse its technology’s operation or make deal with the Presidents of the Countries of origin from that businesses .
So the easier way out of the countries to face the tech titan market, they should co-operate between countries to make a deal, impose taxes to the businesses (tech titan) even if there is no physical presence in the territory of the countries. This Global deal policy actually still a “concept of law” the term of international and constitutional law because this deal has never been known and enforced before. The Deal, would entry into forces as a national law and international law as long as according to the each countries constitution, and usually should get advise and consent with their each Parliament or people representatives.
That is why Mr. President said sorry, I do not agree with the policy of prior administration who sign OECD agreement, because I have an authority to protect my national interests depend of my commitment right now as an elected president to my people so the OECD Global Tax Deal have no force or effect within the United States absent an act by the Congress adopting the relevant provisions of the Global Tax Deal.
In the views of tech titan, there is no international tax evasion, the deal still concept of law not law, because all countries in the world should protect their national interests, so that is why when Mr President make an international agreement it would entry into force effectively to their people should be with advise and consent from their people representatives.
Why Trump Different with prior administration?
Why US prior administration has different views with Trump about Global Tax Deal? The answer depend on their thought about thriving and welfare of human being. In the other side some thoughts in the world believe that only the state that could create and expedite people welfare, so that is why the state/ government should be emerged. The centre gravity of the people lives is the benevolence of the power of the state, and as a politician who will and currently hold the power of the state they become unforgettable and more popular if the people always relied on their welfare and destiny on the political power of the state.
This views born with the concept of welfare states that the state existed to be responsible about fulfillment and advancement of people welfare, particularly the responsibility of the government. Before democracy emerged, there was an absolute power by the King and all the human lives depend on the King’s compassion. After absolute power overthrown by the people, democratic reign was emerging with slogan from the people, by the people and for the people[1].
Even though after democratic reign emerged, the person who comes from the people and elected to drive the Government and elected as a member of representative people, they do not want lost their popularity to the people. They still want to nurture their power includes to make it stronger, and one of the effective ways, by adopted the tactics of power from the absolute power, the people’s welfare and wealth should still depend on the benevolence of the state power.
Is it the wrong views? No, because if the political power of the state open “total free market” as the only one place human being depended to build their welfare most people could not achieve welfare and wealth, because not every human being have a growth mindset and persistence to pursue their welfare and wealth even their happiness. Not every human being have a strong spirit to develop their innovation and creativity to produce goods and services and keep flying around the market with competitively. Caused by this views about human spirit which is different in every human being, so the view of constitutional thought about the ideal of the democratic states that although the state has changed from absolute power to the democratic state, the state should still hold significant role in determination of pursue welfare of the people.
If the Government only use a role as a watch dog, the more people will find their lives as an impoverished people and suffrage and they would shout as a social injustice. So what kind of the significant role of the Government to provide common welfare, make many rules and the the existence of the businesses should depend on the government and impose and levy taxes to every individuals and businesses and If necessary raising taxes on big businesses and the wealthy to fund state budget and public expenditure.
All countries income from taxes are used for the greatest benefit of people, Taxes will function to fund public goods and services such as infrastructure, education and healthcare. Taxes is a tool by government to redistribute wealth, and reducing economic inequality. That is why in every election race in the whole world the candidates always promises about free healthcare, free education, many social programs and social relief, and those things has succeed proven that most of the people interested with this promises. Niccolo Machiavelli (1469-1527) said that “Thus a wise prince will think of ways to keep his citizens of every sort and under every circumstance dependent on the state and on him; and then they will always be trustworthy”[2]
To be continue…
Next
*Featured Photo, Source : Morocco World News*
[1] “that these dead shall not have died in vain– that this nation, under God, shall have a new birth of freedom and that government of the people, by the people, for the people, shall not perish from the earth” (U.S. President Abraham Lincoln, The Gettysburg Address, November 19, 1863)
[2] Robert Green , 2024, The 48 Laws of POWER, Joost elffers books, Renebook.
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