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  • A 'Global Minimum Tax' if Biden Gets His Way

    If you think a “global minimum tax” sounds like a whacky conspiracy theory, you’d be wrong. According to Vice President Joe Biden, it’s the answer for helping to spur manufacturing in the United States. Here are his remarks at a campaign event in Davenport, Iowa (in which he addresses the president of a manufacturing company) :

    “For years, American manufacturers have faced one of the highest tax rates in the world. We want to reduce that by over 20%. We want to drop the rate, particularly, for high-tech manufacturers like you, Mr. President, even further than the 20%.

    “We want to create a global minimum tax, because American taxpayers shouldn’t be providing a larger subsidy for investing abroad than investing at home.”

    The problem is, America’s corporate tax rate is already exceedingly high — on Sunday, it will be the highest in the world. President Obama has offered a corporate tax reform plan that would wreak the same kind of harms that Biden’s global minimum tax would bring with it. Heritage’s J.D. Foster explains the President’s policy and its consequences:

    His new proposal starts strong by reducing the federal corporate income tax rate to 28 percent from the current 35 percent. This is a good and long-overdue policy change. Regrettably, he marries rate reduction to a net corporate tax hike based in part on extending his policy to hammer and ultimately deconstruct U.S. multinational companies. The net effect is that his corporate tax reform would do more harm than good, representing yet another missed opportunity to help American workers.

    The President’s plan would punish firms that outsource jobs by taxing foreign earnings even more heavily, with the goal of encouraging them to “insource” in the United States. But Foster explains that the policy would have the opposite effect — profitable multinational corporations would become ripe for sale to overseas companies who could buy up the assets and escape Obama’s tax penalty. And the global minimum tax would only make U.S. companies bigger targets for international takeover.

    What’s the answer? Foster offers a recommendation:

    The right solution is to pursue a revenue-neutral corporate tax reform, reducing the corporate tax rate as far as sound base broadening will allow. At the same time, in international matters the U.S. should move in exactly the opposite direction from what President Obama proposes so that U.S. companies can compete globally and not become tax-induced targets for foreign acquirers.

    Posted in Featured [slideshow_deploy]

    13 Responses to A 'Global Minimum Tax' if Biden Gets His Way

    1. Maybe if we could round up more of these tax cheats (and NAME them?), we could afford all the tax cuts so-called conservatives are calling for?

      Oldest Swiss Bank Charged With Tax Fraud (by Barbara Leonard, Courthouse News Service)
      Swiss Bank Wegelin Charged in U.S. With Aiding Tax Evasion (by David Voreacos, Bloomberg)
      United States v. UBS Account (U.S. District Court, Southern New York) (pdf)
      United States v. Michael Berlinka, Urs Frei and Roger Keller(U.S. District Court, Southern New York) (pdf)
      UBS Still Popular with Both Obama and Republicans after Paying More Than $1 Billion in Fines (by Noel Brinkerhoff, AllGov)

      • Stirling says:

        I'm sure most of the list you have is due to "crony capitalism" , which by the way republican don't like either. The problem with Obama and the liberal action on this is that eveyone is a criminal until proven innocent, rather then the other way arround which lets the legal system determine guilt or innocence. Try asking "why" create such an enviroment that people either cheat the system, or are forced to "hide" their wealth because government doesn't respect the individual for anything more then using them as an ATM for reckless government spending..

    2. Maybe if we could round up more of these tax cheats (and NAME them?), we could afford all the tax cuts so-called conservatives are calling for?

      Oldest Swiss Bank Charged With Tax Fraud (by Barbara Leonard, Courthouse News Service)
      Swiss Bank Wegelin Charged in U.S. With Aiding Tax Evasion (by David Voreacos, Bloomberg)
      United States v. UBS Account (U.S. District Court, Southern New York) (pdf)
      United States v. Michael Berlinka, Urs Frei and Roger Keller(U.S. District Court, Southern New York) (pdf)
      UBS Still Popular with Both Obama and Republicans after Paying More Than $1 Billion in Fines (by Noel Brinkerhoff, AllGov)

      • Jerkaknot says:

        OH Great you posted it twice…..

        These CRIMINAL acts are being prosicuted… Hence the names of the cases. THEY HAVE NOTHING to do with our current internal tax policy. Our richest CO outsourse because of the bottom line. If our tax rates make it more lucritive for them to MOVE they will and they HAVE moved. It is obvious that you don't understand basic buisness ….. oh why bother….

      • Proud Texan says:

        Posting it twice doesn't mean you are correct. Typical Alinsky tactic. We are on to you guys now.

    3. Bobbie says:

      How about teaching people to pay their own way, Mr. Biden? Keep foreign hands out of our pockets and your hands out of theirs unless they request America's services at their expense to put in Americas' pockets for services rendered. The more you and the President talk about more money for you and the President, the more you steal and corrupt! No thanks to your global government taxing service.

    4. Saltire says:

      Well, the good news is, at least VP Biden is no longer in the Senate unless there is a tie vote. Now, he's touting a global minimum tax…..what is he thinking? Global minimum tax? Well, that would about finish the U.S. off and the demise of U.S. owned companies a thing of the past, if this should ever happen.

    5. Ray says:

      J.D. Foster makes sense, that's exactly why this lame administration will not implement it.
      Bunch of bozo's!!

    6. Stirling says:

      The sad thing about Liberals (like Biden) is that they start with the Rich and then eventually work their way down to everyone (when there is no more wealthy people left – Except themselves). Taxing is just annother way to make sure nobody gets ahead thru hard work, because you disensentivise everyone..

    7. AD-RtR/OS! says:

      Hooray!
      The Obama Administration has come up with a Tax Policy.
      As usual, it is a bad policy.

    8. Pragmatic says:

      I might be missing something, but it seems like what Biden is suggesting is incredibly vague. I googled around (albeit briefly so I probably missed something) but is he proposing a new tax on all US Corporation activities (both abroad and domestic) or an international agreement that would set a minimum tax rate. If it's the latter, then I'm not sure it's a bad idea. It would prevent a race to zero (see Bermuda, Cayman Islands, etc) and decrease the corporate tax rate.

      If its the former, how effective would that be. I'm under the impression that a good deal of outsourcing means hiring 3rd party manufactures (e.g., Apple using Foxconn) so it would seem like this is just smoke an mirrors.

      Any clarification would be welcome.

    9. johnboy11 says:

      let's just tax US to death..maybe i"ll stay home and grow my own food??

    10. Fredom4u says:

      Biden, We'll just close our big business, that will shut down the free tax money, and the well off will simply stay stay in bed, not creating one dime for the government, world or otherwise. And taking the jobs they could have created to the grave.

      Yea, there's always a down side.

      For someone like Biden, who gave to charity less than 1% of his income in any one year, here is yet another gaffe!

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