What Janet Yellen's global corporate income tax proposal means
It is now blatantly obvious that Janet Yellen, former Federal Reserve chair and now the U.S. Treasury secretary, is a globalist who wants to impose financial rules upon all the nations of the world when it comes to corporate income taxes.
In a nutshell, she is proposing that there be a fixed corporate income tax worldwide. The real question is, does she have the financial clout to force all nations to agree and go along?
The reality is that Amazon pays no corporate income tax in the United States, due to tax loopholes. If forced to pay the Biden 28% corporate income tax, Amazon would quickly switch its home base to Ireland as Apple did to pay minimum taxes or it would pick another stable country to operate out of with an even smaller corporate income tax rate. It may still keep its loopholes as the rest of us pay the 28%, given that this is Joe Biden. But if it doesn't, it will have plenty of countries to choose from.
According to the Tax Foundation:
- The worldwide average statutory corporate income tax rate, measured across 177 jurisdictions, is 23.85 percent. When weighted by GDP, the average statutory rate is 25.85 percent.
- Europe has the lowest regional average rate, at 19.99 percent (24.61 percent when weighted by GDP). Conversely, Africa has the highest regional average statutory rate, at 28.50 percent (28.16 percent weighted by GDP).
- The average top corporate rate among EU27 countries is 21.47 percent, 23.51 percent in OECD countries, and 24 percent in the G7.
Money has no allegiance to any country and roams international borders at will. Europe, too, has tax loopholes.
With all the tax loopholes, the net income tax rate for Amazon is really 0%, so the United States is giving Amazon an unfair tax advantage compared to the rest of the world. What is scary is that with Amazon's dominance in commerce, it is profiting from the products worldwide including in the United States and might just have something to do with missing tax revenue at a time of acceleration of national debt. Much money flows out of the U.S. since the dominant number of products bought are foreign in origin. Amazon is siphoning money into its coffers and distributing the American purchases or money to foreign countries to pay for their goods.
High taxation means that in the long run, due to corporate flight out of the country, and offshore tax haven usage by the elite rich, the United States will be in deep financial trouble. The increasing deficit will never be paid back, which logically could mean national bankruptcy somewhere down the line. We are not alone, and the high national debt of many other nations, especially European ones, is also going through the roof for similar reasons.
The United States' dollar is still the world's reserve currency, but our financial supremacy that came about after World War II is being severely eroded because we are producing relatively fewer things that the world needs and wants to buy. You can honestly say the world is financially sucking us dry with China leading the pack. It's the economy, stupid, and our economic status may soon be on a knife's edge. The freedom of our consumer society promoting foreign goods may not lead us into bankruptcy any time soon, but we may have to settle on being in second and then third place in the world based on GDP.
The Republican and Democrat politicians can't agree on a fair corporate income tax in one country, the USA. How probable is it that all the politicians of the world will agree on a fixed national corporate income tax? Zilch, in my opinion! Yellen is nothing short of delusional, as are all globalists who want to financially rule the world in their dreams. Every nation would give corporate tax loopholes to nationally important companies, so a fixed worldwide corporate income tax is really meaningless unless it is without tax loopholes. Dream on, Yellen!
Image: Pixabay, Pixabay License.
To comment, you can find the MeWe post for this article here.