Victor Orban, Republican Against Global Minimum Tax

Foreign Affairs, in its analysis of the prospects for a global minimum tax, noted that both the Hungarian government and US Republicans want to bury the initiative.

Adoption of an agreement on a global minimum tax is not guaranteed. This is because “the EU is seeking unanimous adoption by member states and the government of Hungarian Prime Minister Viktor Orban has threatened to block it.” diplomatic issue Republicans in the U.S. Congress support “Hungarian obstruction” and are trying to sink the deal, he added.

The Hungarian government strongly opposes the introduction of a global minimum tax.Head of the Political Department of Prime Minister Balazs Orban It pointed out – Citing Tax Foundation figures – the tax would almost double the burden on Hungarian businesses and threaten the country’s competitive corporate tax system. We have to support investment to protect rates,” he said.

The issue of the global minimum tax casts a shadow over relations between Hungary and the United States. Republican politicians strongly criticized the Biden administration in July. finish The 1979 tax treaty with Hungary was signed over resistance to the implementation of a global tax. Senators Mike Crapo and Jim Risch, along with Rep. Kevin Brady, I have written “This is a clear attempt to bully Hungary into hasty action on the global minimum tax rate and to interfere in the policy-making process within the European Union.”

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In a statement, Nemes said the US government’s decision to withdraw from the US-Hungary tax treaty signed in the 1970s was aimed at putting “political pressure” on Hungary.keep reading

The Hungarian Prime Minister touched on this issue during his keynote address. CPAC Texas Early this month. “Just recently, when we opposed the Global Minimum Tax Initiative, we came under attack again. All European countries surrendered. Hungary is the last man standing. I will,” he said. According to Orbán, the terminated agreement was “probably the best tax deal ever negotiated.” “It was good for US investors. There are 1,700 US companies operating in Hungary. I somehow forgot that I was there, but it has nothing to do with Hungary anymore.It’s funny,” he added.

According to Foreign Affairs, Victor Orban and Republican obstruction may not necessarily be fatal to the deal.

Featured photo via Miniszterelnööki Sajtóiroda/Benko Vivien Cher Victor Orban, Republican Against Global Minimum Tax

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