Biden And Janet Yellen Are Pushing A Global Minimum Tax Rate. The EU Is Very Pleased.

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It has long been a dream of central planners and interventionists to set a global, uniform tax rates for all regimes. These globalists know that so long as sovereign states have the ability to freely set their own tax rates, some regimes are tempted to engage in “tax competition” in order to attract capital. When this happens “tax havens” which allows companies and individuals to “shop around” in terms of where to put their productive wealth.

The antidote to this “problem,” we are told, is so-called tax harmonization. Under tax harmonization schemes, all governments are forced to impose a certain minimum tax rate so that high-tax countries need not compete with low-tax countries. Non-compliance comes with sanctions.

Without tax havens, of course, regimes have more freedom to raise taxes to ever-higher levels because the gap because the high-tax regimes and low-tax regimes is significantly lessened.

So, it should surprise no one that President Biden’s Treasury Secretary Janet Yellen is now pushing for a global minimum corporate tax, and for an increase to the US corporate taxes:

U.S. Treasury Secretary Janet Yellen on Monday urged the adoption of a minimum global corporate income tax, an effort to at least partially offset any disadvantages that might arise from the Biden administration’s proposed increase in the U.S. corporate tax rate.

Citing a “30-year race to the bottom” in which countries have slashed corporate tax rates in an effort to attract multinational businesses, Yellen said the Biden administration would work with other advanced economies in the Group of 20 to set a minimum.

Naturally, such a scheme doesn’t work without a means to punish countries that don’t cooperate. According to Reuters,

The U.S. plan envisages a 21% minimum corporate tax rate, coupled with eliminating exemptions on income from countries that do not enact a minimum tax to discourage the shifting of jobs and profits overseas.

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