Via Francisco Gonzales of American Action News:
In 2017, President Trump and the Republican-led Congress passed a large tax reform package, one which included lowering the top corporate tax rate from 35% to 21%. Part of the idea behind this was to ensure that corporations have less of a reason to leave the United States and perhaps to incentivize others who had taken their business abroad to repatriate back home – all in the name of helping to create more jobs for America’s labor force.
Now, President Biden and the Democrat-led Congress want to undo this progress and once again raise the corporate income tax – something that would not help an ailing economy that is trying to recover from the pandemic and its subsequent economic shutdown.
Biden’s Treasury Secretary Janet Yellen thinks she’s come up with a clever idea. In order to prevent other countries from having a lower, more competitive tax rate than the United States, she has proposed a global minimum tax. She claims this would prevent a “race to the bottom,” where countries try to outdo each other by lowering tax rates to attract business.
The very suggestion of this idea means that Yellen and the Biden administration clearly recognize a principle of the free market: competition. Yes, it works. However, they do not want the invisible hand to do its job by attracting capital and labor in a way that Adam Smith might recognize. Instead, they would rather have the very visible hand of not just one government, but many governments, coordinating with each other in such a global fashion that it makes globalists look like they have been asleep at the wheel for decades.
In a recent speech to the Chicago Council of Global Affairs, Treasury Secretary Yellen added that “America first must never mean America alone.”
What’s truly remarkable is that in the rest of her speech she went on to describe global crises in poverty, the environment, and COVID19, admitting that more than half the globe will not see any of the COVID19 vaccines for quite some time due to their inability to afford it.
“The result will likely be a deeper and longer-lasting crisis, with mounting problems of indebtedness, more entrenched poverty, and growing inequality,” she said. Yellen estimated as many as 150 million people could be pushed into extreme poverty this year, which “would be a profound economic tragedy for those countries, one we should care about.”
Perhaps allowing those countries to set whatever corporate tax rate to attract more business for their starving labor force would be a good place to start if we truly “care about” them. As an American, I want as many jobs as possible to stay in America. However, we (including Ms. Yellen) all know that if we raise our corporate tax rate, we should expect some U.S. corporations to move some of their operations overseas and pay taxes in countries that have a more favorable tax environment. That means less jobs for Americans.
But the very idea we would ask other countries, including those struggling with high levels of poverty, to agree to a global minimum corporate tax rate, is really mind-boggling. It’s almost like asking China to agree to our standard of human rights.
The entire premise of this proposal means that Ms. Yellen understands economics very well and is intent on abandoning the true and tried economic principles of a free society towards one where the brute force of government imposes taxation on all of us – and leaves us nowhere else on the planet to escape. Good thing for us, this proposal won’t see the light of day. However, it does shed some light on the true ideological underpinnings of the modern Left and just how far they are willing to go.
The opinions expressed by columnists are their own and do not necessarily represent the views of AmericanActionNews.com
I suppose there’s always a chance that all the countries we’re talking to are really, really stupid and will raise tax their rates to make them less competitive and the US more competitive, but it sure seems like a long shot.
China Joe Biden is a complete demented idiot. He has no respect, no standing, no leverage, he is bought and paid for by China and he wants other countries to set their taxes to what ours are so our companies will not leave the U.S. What is one reason one country would not laugh him out of the room or whatever? How about not raising our taxes – personal or corporate and stop giving away billions to other countries and illegals. Shut our borders and send all the illegals home and protect American workers and citizens.
The higher globalists and globalist puppet $oro$ and globalist puppet chester the molester biden increases taxes the more money globalists and globalist puppet $oro$ and globalist puppet chester the molester biden and globalist puppet democrat criminal party and globalist puppet rino criminal party deposit into their private bank accounts .
Democrats cheat to get in and we all knew the next step tax the living hell out of everyone and everything.
Democrats cheat to get in and we all knew the next step tax everyone and everything. Apparently on this site you can’t even say H E L L or your comment is awaiting approval, how pathetic.
Hollywood Conservative you can kiss my a s s you won’t have to worry about my comments anymore sending you to spam.
Great. Empty your bank account to the radical left to save them time from having to fleece you without even a thank you for falling for the greatest theft of personal earned wealth in history.
Ha Ha Ha Ha Ha Ha!!!!!!!!!!!! How do these liberal nitwits think they can force their ideas on the entire world? Democratic liberalism truly is a mental disorder.
Is Janet Yelled afflicted with the same malady as Joe “THE SNIFFER” Biden, forgetting that she is the Treasury Secretary of the USA, and not the World.
Trying to lead the world into a deep abyss.
The first step to a One-World Government. If you read your Bible you are already familiar with this concept. However, I don’t think Biden is anywhere close to smart enough or charismatic enough, to be the Anti-Christ that the Bible speaks of. But, it does clearly show that we are in the” last days”.
Sounds like the Communist New World Order—not America.
SO NOW, this communist sympathizer is trying to run other country’s business?! He can’t even run ours without SCREWING it up Royally!!
Have any of these Democrats ever taken courses in economics, law, or even just simple logic? Each country in sovereign and cannot be forced to abide by the laws of the United States. So, even if Congress does somehow actually make this idea become a law, there would be no chance that it would go anywhere. The other countries around the world would laugh at the US for even attempting this.
Admittedly, the article does say that the Democrats are looking for agreement and cooperation from other countries but, to be frank, when have the Democrats ever looked for cooperation from others when they feel they are on the right side? They do whatever they want and then hurl insults at those who second-guess, question, or obstinately ignore them.
Yellen, Hidin’ Biden, and all the other fool Democrats need to leave the administration of our country to the adults, those who have actually accomplished good things over the course of many decades: the real Republicans (not RINOs).
I look at anything that Biden proposes as problematic! I don’t see him as a person who should be President and I find it shocking that America actually elected Biden as President! I bellieve that anything that Biden proposes will be to the detriment of Americans!
But, America didn’t elect him, not legally at least. The day is coming when the world will be electing our president, because no id allows EVERYONE to vote, and vote OFTEN! That’s what the democrooks are trying to put in effect as we speak
And I have to wait for someone else to approve my message, more democrook tampering with our constitutional rights!
True, but the VP will be more dangerous. And more effective.
You assume God is going to allow this totally evil women to be President—- l don’t think 🤔 so.
We all know Biden won’t make it to December his mind and health full of disease . A very sick individual is running this country Soros is giving the orders . China and Soros are pulling his strings.
It is not free money. Some co9njsumer has to pay an elevated price for the product. That money reduces earnings which payroll comes from thus either fewer employees or they must pay them less. Also dirves expansion and reasearch and development.
I don’t think any country (especially the US) should be asking other countries to change so that we become more competitive tax wise (or any other wise). We need to be minding our own business and if we can’t compete then maybe our country is to blame by over taxing so we can give away money to other countries and non citizens. We need to tighten our belts in DC. No more foreign aid, no more lifetime pay checks for politicians, no more special medical plans for them either. Make them join social security like the rest of us. No more giving themselves pay raises and it’s about time we install some term limits for them also and for the same reason we did it for the presidency. Stop giving welfare to non citizens; the US isn’t your rich relative you get to live off; time to pay your own way or go home to your passport country. Let them support you. I’m not against immigration, but damn it, I don’t want to support you with my taxes. I also believe that if you are on welfare and physically able to work, it should be mandatory that you report for work every working day. They can give you your assignments based on your skill set and no matter what the job is, you have to work to get a payday. If you don’t like your assignment, you are free to find another job and get off welfare. Obviously if you are elderly or disabled, this wouldn’t apply.
I know some say that Joe Biden has lost control of our government but I say that he never had control. When the Left cheated the 2020 election they should have just written in someone else. Joe Biden is a joke and an embarrassment.
Corporations don’t pay tax, period!! It’s a pass thru tax paid by the consumer. A global minimum corporate tax will hurt other nations that ship their products to the USA. It will make their products more expensive here because of shipping. If it somehow got enacted, our minimum corporate tax rate would be higher or the other nations of the world that export to us would be harming their own businesses. Abort, impeach, defund and cancel the left now!! The snowflakes, commies and socialists would cry themselves to sleep every night. Wouldn’t that be great?!?!
The only world leader stupid enough to destroy their economy ,jobs, growth, and competiveness is Biden. It is his attempt to raise taxes to pay for a socialist state and unlike other countries who have failed he is naively thinking they will fall into the same trap again,
Look at Biden , Pelosi, Waters, Schumer & their ilk—- this is what they all have into common they like Saul Alinsky love Lucifer, they have became demented thieves growling to be relevant There are both bad apples and sad apples and that’s all they are—- no thanks who wants to get old and look like a snake 🐍 like they do.
It takes a lot of nerve, or just blatant stupidity to tell world how to set taxes in THEIR nations.
Who does Biden think he is, The leader of the World? Maybe his dementia is getting worse?
Or he’s becoming delusional ? Or both?
The clown is telling the rest of the world what to do . They have been laughing at him ever since he took office . We think is a puppet Full of FUBOR . U do know what that means
Fuxk up beyond Repair. Trump gave him the Vaccine, other than that costing us 100,000 jobs and having us locked up in our houses what has he done except giving illegals everything that Americans don’t get not even the Military had to sleep in a parking garage Illegals get to sleep in hotels