Treasury Secretary Janet Yellen has officially called for a minimum global corporate tax rate, saying that “tax competition” distorts the economic playing field and pressures governments to erode their tax base.
Yellen made the comments in front of the Chicago Council of Global Affairs at a time when the Biden administration is contemplating raising corporate taxes to pay for an ambitious nationwide infrastructure plan.While the plan will go to rebuild roads, bridges, water lines and electrical grid, some fear corporations will move their operations overseas to avoid the new taxes altogether. Yellen complained that some countries are participating in a “race to the bottom” in regard to their corporate tax rate.”Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said in prepared remarks. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”
The move appears to be an attempt to head off the damage the Biden tax hike is likely to cause.
President Biden’s proposal to raise the corporate tax rate to 28% from 21% would push the U.S. from the middle of the pack among major economies to near the top. The Biden plan would also impose a 21% minimum tax on U.S. companies’ foreign income, remove an export incentive and raise taxes on some foreign companies’ U.S. operations.If the U.S. raises its tax rates and imposes higher burdens on U.S. companies’ foreign profits, a global minimum tax would help prevent companies based in other countries from having a significant potential advantage. That coordination and the ensuing tax revenue—not necessarily the aims of U.S.-based companies—rank high on the administration’s priorities.
I am struggling to care about corporations. Between Woka Cola, Delta Airlines, and other big corporations pushing social justice and racialist dogma harder than products, I find it difficult to tap into my capitalist soul.
On the other hand, those higher taxes will put more money into the coffers of global elites like Yellen, other globalist lackeys, and China. Furthermore, there will be no refuge from their money grasping ways. I think I hate the idea more.
Not everyone is ready to go global when it comes to financing.
In summary: One tax rate to rule them all, and in bureaucracy, bind them.
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