Monday, April 5, 2021

The Empire's New Demand for a Global Minimum Tax


Treasury Secretary Janet Yellen made a  renewed call for a global minimum corporate tax rate this morning.

"We're working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom. Together, we can use global minimum tax to make sure that the global economy thrives, based on a more level playing field in the taxation of multinational corporations and spurs innovation, growth and prosperity," Yellen said in a speech to the Chicago Council on Global Affairs.

Yellen just hates that anyone in the world is willing to give a tax break of any kind to anyone.

"It's 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."

Yellen had previously called for a global minimum corporate tax rate, including during her confirmation process earlier this year.

This is all about trying to ensure that no one undercuts U.S. tax rates. 

The Empire sets all the rules, or at least that's what they thought in Rome before that empire collapsed.

-RW

5 comments:

  1. CAN'T SEE ANY OF THE COUNTRIES WHO BENEFIT CHANGING THEIR RULES FOR A CLOWN LIKE YELLEN. THE CHILDISH, DELUDED "LEADERS" IN USA HAVE YET TO REALIZE THAT, FOR MOST OF THE REST OF THE WORLD, THEY ARE REGARDED AS LAUGHABLY INEPT.

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  2. Replies
    1. I'd prefer that to be a global maximum than minimum.

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  3. Interesting, a call for cartelized price fixing. Something they scare us the free market would do (which has led to ridiculous antitrust laws).

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  4. I just don't see this working in any fashion, even on utilitarian grounds. I don't see a lot of smaller countries even bothering to join such a coalition. What if China or India simply refuses to join? Most countries will just avoid operating in Europe and the United States so that won't work. I mean I guess we could impose sanctions on countries who refuse to join, but I feel the costs at that point far outweigh the benefits. S

    econdly let's say everyone did agree to it, but who sets the agenda? I can't imagine Yellen believes that the U.S. will have unilateral control to set the rates with none of the other countries having a say. Is it going to be an economic council? Will it go by strict majority of these countries, or will it be like a G-5 summit? Not to say the U.S. won't strong arm a lot of countries into submission, but this just looks like a complete disaster for foreign relations. I don't even need to get into the impracticable nature of this tax on economic grounds.

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