Issues of Tax Haven, Goals of the Millennium Development and Universal Access to Water - Coursework Example

SPECIAL PROJECTS SPECIAL PROJECTS Introduction Globalization is the practice of integration which is international emerging from the intersection of products, worldviews, ideas, and the various culture aspects. Advances in WTO matters of the institution, issues in agriculture in the perspective of the negotiations of WTO, issues with the General Agreement connection on Trade in Services. In addition, there are the issues of tax haven, Tobin tax access to water that is universal, and the goals of the Millennium Development are the major matters in globalization. There are certain Parliamentary bodies that deal with international trade such as the Special Committee on Globalization. The Committee usually meets in a session that is public and works intimately with the civil society. The representatives of Non-governmental organization (NGO) are invited to take part in the meetings of the committee and are authorized to participate in debates with experts or experts of the world of academics which are called upon to testify. As a diplomat of the America in the working committee and particularly the Global North, it would be good to put into consideration the following issues; issues of tax haven, goals of the Millennium Development and universal access to water1. Issues of tax haven The Offshore havens of tax, spread by new telecommunications and computing, offer unprecedented shelter for tax, enabling the wealthy citizens and companies to evade the system of national tax. The rich evaders of tax save millions of cash while infrastructure and services of the public in the global north remain underfunded in a drastic manner. Tax havens take part in a primary position in the financial architecture that is universal, utilized by corporate investors and kingpins of drugs to hide their assets and lie to the system in the Global North. The companies that use the loopholes in the system of tax typically pay lower that thirty-five percent of the corporate tax rate in the United States, which burdens revenue at a time of enormous shortfalls in the budget. The President America has been calling for significant reforms to the code of the corporate tax to abolish the fogginess. In addition, companies that are transnational in the global North utilize various techniques take advantage of their nature of transactions that is cross-country. They also benefit from the contradictions and loopholes in the legislation of tax by the countries that are involved in the avoidance and evasion of taxes2. The taxation of companies that are transnational will remain a challenging and an essential issue as long as there is an economy that is globalized. The avoidance of tax by enterprises in the Global North entails the utilization of countries that have a small tax and tax regimes that are preferential. It is frequently linked to the pricing transfer of intra-company trade, for the products that are physical, but also for the intangibles which involve royalties and fees that can be greatly abused so as to minimize the burden of tax for the entire company. Methods that have gotten importance in current years in the Global North entail the violation of mismatches of qualification between jurisdictions for entities that are hybrid, instruments of finance and derivatives. Over a trillion dollars in short-term investments and cash sits in companies in Global North waiting for tax holiday repatriation. In the process, the professionals of tax invent ways of manipulating the system. The code of tax offers the multinational companies which are based in the global North with numerous incentives to transfer income to low-tax jurisdictions that are foreign. The income that is earned by a controlled foreign company that is active is not taxed until the money is repatriated to the parent corporation in the global north as dividend. From the perspective of a policy, the shortcoming is not that the foreign income tax is deferred, but rather that the income of the global north is being masqueraded as revenue that is foreign. Many multinational companies in the global north use pricing transfer (the pricing of services and goods that are sold between subsidiaries of a parent country) to reduce their global rate of tax. After the companies have shifted property that is intellectual to jurisdictions of low-tax, they manipulate arrangements of cost sharing and licensing to reduce or avoid taxes of the United States3. The rules of accounting make the situation worse. Basing on the assumption that the earnings of an affiliate that is foreign will in the end is distributed to the parent country In the United States. The promise of the future tax of thirty-five percent on income that is usually repatriated creates a tax liability that is differed on the balance sheet that is consolidated. However, there is an exception to that, for reinvested earnings that are permanent which are the earnings that the parent company does not require and is reinvesting overseas permanently. If a firm in the global north can convince its accountants, that the money will be reinvested overseas and not in the United States, then the company can avoid indicating a tax liability on the balance sheet. Hoarding of money in tax havens is the evidence of absolute cost of tax deferral that is international, as firms participate in planning techniques of tax that are wasteful and fail to allocate the resources of the economy in a manner that is efficient4. 5 Goals of the Millennium Development The global north in the United States has a plan that is focused to strengthen its voice in the dialogue on world development. The strategy investigates on what is required to be done so as to achieve the MDGs. The global north puts sustainability and innovation as a primary approach to addressing the human development indicators that are important to leverage the synergies in crosscutting. The goals include; Globally eradication of hunger and poverty. The global north will assist in funding the feeding of the future three-year budget of 3.5 billion dollars. It will also contribute to pursuing the country-led, whole-approach-of society of feeding the future. Attain primary education that is universal. The Global North will give a helping hand to launch an initiative of global education to coordinate and galvanize assistance in training that boosts quality, access, and results to the sustainability of the host country. It will also help in devoting enough resources to end the global education for all gap funding. In addition, the global north will offer support that is meaningful for an independent and reformed education for an Initiative of All Fast Track. It will also ensure that opportunities of education are made available to the marginalized youth and children. Promotion of equality of gender and women empowerment. The global north will link gender into all foreign assistance programs and policies. It will also focus on the support of education so as to overcome the barriers of girls going to school. Reduction of child mortality, improvement of health that is maternal and combating HIV/AIDS, malaria and other diseases. The global north will contribute to the full funding and implementation of the Global health initiative of the President of the United States. It will also back the promotion of equality of gender and assuring the equality of access to the issues of health care. Ensuring sustainability of the environment. The Global North will assist in the tackling of changes in climate domestically in the United States. It global north also ensures the development of a strategy that is comprehensive for sanitation, water, and hygiene. It will also give a helping hand in the international urban policy of development that is comprehensive. Developing a partnership for development that is global. The global north will assist in expanding the access of a quota-free and duty-free market to all exports from the fewer developed nations. It will also ensure that the agriculture and trade policies of the United States do not hinder the development objectives of the United States. It will also help in promoting the relief for the debt for the poor countries that are indebted heavily that are facing shocks that are exogenous from the continuing financial crisis that is global. The global north will also assist in improving coordination across the government agencies of the United States which are involved in the program of development6. 7 Universal access to water On a daily basis, almost five thousand children die from water that is dirty. Access to drinking water that is safe is a human right that is universal. The Global North is ensuring that over eight hundred individuals who recently do not have access to water have a similar opportunity of enjoying a life that is healthy. Access to water is commonly taken for granted in the United States, but it is an issue that needs consideration. The society of civil engineers in USA released a report card evaluating the infrastructure in America. Access to drinking water received a D minus. Unless an investment that is substantial is made to deal with the issue, the infrastructure that powered the economic supremacy of America of the twentieth century will be unsuccessful8. 9 Reasons why the issues need attention The three discussed issues require a lot of attention as compared to other primary issues due to the following reasons; In the issues of tax haven, the rich evaders of tax save millions of cash, while infrastructure and services of the public in the global north remain underfunded in a drastic manner. In addition, the taxation of companies that are transnational will continue to be a difficult and an essential issue as long as there is an economy that is globalized. In the issue of millennium development goals, if the anticipated objectives are to be accomplished then the world will transform in a positive manner and most of the human shortcomings will be dealt with thus improving the quality of life. In the issue of universal access to water, it is important since many people die on a daily basis due to lack of drinking water. More so water is an essential part of human life which needs to be taken seriously for the better life of humanity10. Proposed solutions Although a number of approaches to deal with the problem of tax havens do exist, but they need to be strengthened and improved. They go from the rules of pricing, requirements of transparency like reporting of country-by-country, registers that are centralized, ownership that is beneficial, and information. There is also a restriction of deductibility such as measures of anti-avoidance like blacklists. The other approach is the abolition of the abuse of agreements of double taxation an example is the shopping treaty and the greater use of withholding taxes. More so having the enormous shortcomings of the recent pricing system transfer, a change in the system in the kind of taxation that is unitary needs to be tested and thought further11. Despite the shortcomings in dealing with the avoidance of tax, the governments in the global North should not give up their international and national efforts in the direction to stop the evasion. However, the solutions that are current to deal with aggressive tax evasion and tax avoidance only lessen some of the problems. In the real sense, they are not sufficient or are incomplete. In addition, the civil society, the policy makers, and the entire public are required to rethink on how to ensure there is an enough tax base12. In dealing with the millennium development goals, the global north urges the United States to build a whole approach of government to development, which will need consistent and reinforcing of official development assistance that is mutual, investment and trade policies, and practices. The whole of government approach requires entailing organizations of the civil society in the United States and in nations that are developing in planning that is strategic at the country level as well as the design, evaluation and implementation of programs. The United States need to work with the civil society both at home and the fewer developed countries so as to create accountability, transparency, and measures of integrity into the program13. The best feasible remedy to address the problem of universal access to water is that the citizens of the United States should educate themselves. They should learn about and promoting the United Nations Millennium development goals on gaining access to drinking water which is an enormous way to commence14. Response from the members of the civil society The discussed issues will be accepted by the members of the civil society in a positive manner. A representative of the Global North is likely to respond positively since he comes from that region and the issues affect him whether directly or indirectly. In addition, a representative from the Global South will also respond positively since the issues affect the United States at large, and therefore they will affect the people he is representing15. Conclusion Globalization is the practice of integration which is international emerging from the intersection of products, worldviews, ideas, and the various culture aspects. The globalization issues discussed are; tax haven, goals of the Millennium Development and universal access to water. Tax havens take part in a primary position in the financial architecture that is global, utilized by corporate investors and kingpins of drugs to hide their assets and lie to the system in the Global North. The global north has a plan that is focused to strengthen its voice in the dialogue of world development as a means of achieving the millennium development goals. The Global North is ensuring that over eight hundred individuals who recently do not have access to secure drinking water have a similar opportunity of enjoying a life that is healthy16. Bibliography Cheru, Fantu, and Colin I. Bradford. The millennium development goals: raising the resources to tackle world poverty. London New York Helsinki, Finland: Zed Books in association with the Helsinki Process on Globalization and Democracy, 2005. Heymann, Jody, and Magda Barrera. Ensuring a sustainable future : making progress on environment and equity. Oxford New York: Oxford University Press, 2014. Langford, Malcolm, Andrew Sumner, and Alicia E. Yamin. The millennium development goals and human rights : past, present and future. Cambridge: Cambridge University Press, 2013. Liberalisation and universal access to basic services telecommunications, water and sanitation, financial services, and electricity. Paris S.l: OECD World Bank, 2006. Mistry, Percy S. Financing for development : perspectives and issues. London: Commonwealth Secretariat, 2002. Sharman, J. C. Havens in a storm : the struggle for global tax regulation. Ithaca: Cornell University Press, 2006. Read More