by Mitch Kokai
Senior Political Analyst, John Locke Foundation
If you want to stick it to big corporations and rein in their real or perceived abuses, use your political prowess and the laws of your own sovereign country to do it. Instead, the Biden administration wants to sidestep this responsibility and cede U.S. corporate tax policy to create a new global corporate tax rate. Price-fixing tax rates, if you will, would make it harder for companies to jump to cheaper countries to do business. Instead of competition, this group of nations seeks to make businesses their captives.
This is not tax policy, it’s the establishment of a cartel.
It’s not lessening income inequality—one of the reasons given for this socialistic move toward, dare I say it, a global government—it’s intended to enrich government.
This one-world tax plan would kill competition and make the 130 countries that have so far signed on—there are only 169 recognized countries in the world—a one-world-ish cartel where individual liberty would take a back seat to corporate liabilities. …
… Treasury Secretary Janet Yellen says lowering tax rates to make a country more competitive is not good pricing, it’s a “race to the bottom,” therefore, we need a new global tax.
This “race to the bottom” is so “bad” for Ireland that it refuses to become a part of this tax cartel because business is so good. When Trump lowered the U.S. corporate tax rate, nearly a trillion dollars was repatriated to the U.S. in 2018, which heretofore had been parked in lower-tax countries.
As it is, Joe Biden and Yellen want to wrap up this global tax entity by October. Gee, guys, what’s the hurry? They also want to raise the U.S. corporate tax rate, reduced by President Trump from 35% to 21%, back up to 25%.