(AmericanProsperity.com) – Multinational corporations usually seek out countries with low tax rates, like Ireland, in order to maximize their profits. So, it makes sense that President Joe Biden is a bit worried about companies leaving the US as he hopes to hike corporate taxes to fund his enormous $2.25-trillion dollar infrastructure bill. But, his fix for this issue is not to spend less money, but to try and get the world to agree on a global minimum tax rate.
On Wednesday, April 7, President Biden announced his support for a global minimum corporate tax in order to discourage American companies from moving overseas, if he’s successful at raising corporate taxes from 21% to 28%. This echoed Treasury Secretary Janet Yellen’s call for the universal tax on Monday.
The Recount shares more:
In her first major address, Treasury Secretary Janet Yellen says the global minimum corporate tax rate would “stop the race to the bottom.” pic.twitter.com/ysgJNDKXPf
— The Recount (@therecount) April 5, 2021
A universal tax rate would only be a rough agreement between developed countries, and there’s little any nation could do when one decides to back out of the agreement, as it would not be a treaty. This plan could also cripple nations that actually budget well and do not need hefty tax rates to pay for their spending. Lower tax rates keep jobs in the country and boost per capita income, which is just one more reason for these tax rates to stay just where they are.
~Here’s to Your Prosperity!
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