There is a war of economic ideology building here in the United States as of late, with the Republicans and Democrats driving the issue ever further into opposite corners of the political spectrum.
On the far left, they seem to prefer Democratic socialism, where a great deal more of the money collected by the government is then put back into the pockets of Americans who may or may not have contributed to the cause. These are the folks that are also looking to install a number of new taxes in order to better serve this idea.
The Republicans, on the other hand, are big believers in capitalism, unfettered. They believe that hard work should equal success, and that any other setup would upset the natural order of things.
Perhaps that’s why the latest from US Treasury Secretary Janet Yellen is so alarming to some.
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Janet Yellen will use her first major address as Treasury secretary to argue for a global minimum corporate tax rate, Axios has learned, as she makes the case for President Biden’s plan to raise U.S. corporate taxes to fund his $2 trillion+ infrastructure plan.
Convincing other countries to impose a global minimum tax would reduce the likelihood of companies relocating offshore, as Biden seeks to increase the corporate rate from 21% to 28%.
“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen will say today in a speech to the Chicago Council on Global Affairs, according to an excerpt of her prepared remarks obtained by Axios.
“It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”
“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom.”
The move is sure to reignite criticisms over the tax structure here in the US, as the GOP continues to warn against the potential for “socialism” to arrive under the Democratic banner.
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