Janet Yellen Calls For Global Minimum Corporate Tax Rate

Go4Broke

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Now we're talking. All the American corporations (and their incredibly wealthy corporate officers and shareholders) who have made untold billions of dollars from the U.S. economy and the American way of life and then hid their profits and fortunes in foreign tax havens need to be stopped and held to account for their unpatriotic and anti-American behavior.

Yellen calls for a global minimum corporate tax rate

Treasury Secretary Janet L. Yellen made the case on Monday for a global minimum tax, kicking off the Biden administration’s effort to help raise revenue in the United States and prevent companies from shifting profits overseas to evade taxes. Ms. Yellen, in a speech to the Chicago Council on Global Affairs, called for global coordination on an international tax rate that would apply to multinational corporations regardless of where they locate their headquarters. Such a global tax could help prevent the type of “race to the bottom” that has been underway, Ms. Yellen said, referring to countries trying to outdo one another by lowering tax rates in order to attract business.

Her remarks came as the White House and Democrats in Congress begin looking for ways to pay for President Biden’s sweeping infrastructure plan to rebuild America's roads, bridges, water systems and electric grid. “Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Ms. Yellen said. “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.”

Senator Ron Wyden, the Oregon Democrat in charge of writing tax legislation, will release a new plan on Monday to overhaul the way the United States taxes multinational corporations. In addition to raising revenue, the proposal, which is co-authored by Senator Sherrod Brown of Ohio and Senator Mark Warner of Virginia, seeks to discourage companies from shifting profits and jobs to low-tax countries to avoid paying taxes in America. It also creates new incentives through the tax code for companies to invest in research and manufacturing in the United States.

https://www.nytimes.com/2021/04/05/business/yellen-global-minimum-corporate-tax-rate.html
 
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Go4Broke

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Janet Yellen's proposal to revolutionize corporate taxation


A high global minimum tax would address the issue — and ultimately allow the world to reconcile globalization with tax justice." The rate of the minimum tax is still being discussed, but if set at a reasonable level, it would be a huge blow against corporate power. In effect, nations would regain a great deal of economic sovereignty — allowing them to choose corporate policies based on what they think is best, rather than being forced to follow the herd and prostrate themselves before the corporate elite.

It is an interesting question as to why Democratic establishment types like Biden and Yellen are pushing this kind of fairly aggressive policy. The complete failure of the Trump corporate tax cuts to perform as promised probably has something to do with it. According to neoliberal economic theory, such cuts should spark investment because companies will get to keep a greater share of the revenues resulting from that investment. That did not happen because of inequality — the mass of American consumers did not have the money to buy the products that new investment would have produced and corporations were already sitting on record hoards of cash. Corporate investment is only surging now thanks to all the money put into ordinary people's pockets through the various pandemic rescue packages, which has spiked demand for all sorts of things

At any rate, it remains to be seen whether Biden's tax plan can get through Congress. But Yellen could still accomplish a great deal without that happening. If a critical mass of countries can agree to stand together against big corporations, politics around the world would take a sharp turn for the better. Ultimately, corporations depend utterly on state laws and structures to exist at all. It's only fair to make them pay their fair share.

https://theweek.com/articles/975735/janet-yellens-proposal-revolutionize-corporate-taxation
 

Section2

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Giving more ammo to the globalist “conspiracy theorists”
 

justthefacts

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Now we're talking. All the American corporations (and their incredibly wealthy corporate officers and shareholders) who have made untold billions of dollars from the U.S. economy and the American way of life and then hid their profits and fortunes in foreign tax havens need to be stopped and held to account for their unpatriotic and anti-American behavior.

Yellen calls for a global minimum corporate tax rate

Treasury Secretary Janet L. Yellen made the case on Monday for a global minimum tax, kicking off the Biden administration’s effort to help raise revenue in the United States and prevent companies from shifting profits overseas to evade taxes. Ms. Yellen, in a speech to the Chicago Council on Global Affairs, called for global coordination on an international tax rate that would apply to multinational corporations regardless of where they locate their headquarters. Such a global tax could help prevent the type of “race to the bottom” that has been underway, Ms. Yellen said, referring to countries trying to outdo one another by lowering tax rates in order to attract business.

Her remarks came as the White House and Democrats in Congress begin looking for ways to pay for President Biden’s sweeping infrastructure plan to rebuild America's roads, bridges, water systems and electric grid. “Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Ms. Yellen said. “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.”

Senator Ron Wyden, the Oregon Democrat in charge of writing tax legislation, will release a new plan on Monday to overhaul the way the United States taxes multinational corporations. In addition to raising revenue, the proposal, which is co-authored by Senator Sherrod Brown of Ohio and Senator Mark Warner of Virginia, seeks to discourage companies from shifting profits and jobs to low-tax countries to avoid paying taxes in America. It also creates new incentives through the tax code for companies to invest in research and manufacturing in the United States.

https://www.nytimes.com/2021/04/05/business/yellen-global-minimum-corporate-tax-rate.html
This idea is an extension of what Jeffrey Sachs wrote about in The End of Poverty. He talks about the race to the bottom with corporate tax rates. I like where Yellen's head is at, but obviously is complete fantasy.
 

Wally

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We should put sanctions on all tax havens. Turn that money radioactive and watch the cockroaches scatter.
 

MplsGopher

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but obviously is complete fantasy.
Why? All developed countries should absolutely sign on.

If a corporation is so greedy and worthless, that they're willing to HQ in a 3rd world country and deal with the crappy government there, just to get a lower corporate rate .... F em. Let em deal with that headache.
 

justthefacts

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Why? All developed countries should absolutely sign on.

If a corporation is so greedy and worthless, that they're willing to HQ in a 3rd world country and deal with the crappy government there, just to get a lower corporate rate .... F em. Let em deal with that headache.
Because you can put HQ anywhere. It's not like all the giant corporations really put their leadership in Ireland or before that the Bahamas
 

MplsGopher

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Because you can put HQ anywhere. It's not like all the giant corporations really put their leadership in Ireland or before that the Bahamas
Then all developed countries codify tax law that a HQ only qualifies if x,y,z. Make them feel the pain of putting their HQ in 3rd world.

The whole point is to avoid the race to the bottom.
 
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Ogee Oglethorpe

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This idea is an extension of what Jeffrey Sachs wrote about in The End of Poverty. He talks about the race to the bottom with corporate tax rates. I like where Yellen's head is at, but obviously is complete fantasy.
I'll wait to see what the actual impact becomes. As it's portrayed, I have no issue with it. But the reality will likely be, like it is with many things like this with good intentions, the small business owners, the companies with 5, 20, 50 or 85 employees will be the ones taking it up the ass. But hey, we can say that we "went after those evil CORPORATIONS".

If they actually follow through with this as they want people to think now, I'll stand and applaud. But color me skeptical
 

Section2

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This idea is an extension of what Jeffrey Sachs wrote about in The End of Poverty. He talks about the race to the bottom with corporate tax rates. I like where Yellen's head is at, but obviously is complete fantasy.
I wish corporate tax rates were a race to the bottom. Zero is the correct rate. Individuals should pay taxes, not corporations.
 

Section2

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I'll wait to see what the actual impact becomes. As it's portrayed, I have no issue with it. But the reality will likely be, like it is with many things like this with good intentions, the small business owners, the companies with 5, 20, 50 or 85 employees will be the ones taking it up the ass. But hey, we can say that we "went after those evil CORPORATIONS".

If they actually follow through with this as they want people to think now, I'll stand and applaud. But color me skeptical
There’s a reason mega corps support this. They can afford it, their competitors can’t.
 

justthefacts

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There’s a reason mega corps support this. They can afford it, their competitors can’t.
It's not really that they can afford it. They have shareholders too. It's that they have an army of tax lawyers who can make their effect tax rate 0.
 

MplsGopher

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Zero is the correct rate.
All businesses can only make profit if infrastructure exists. They won't pay directly to build it, and it can't be paid for only with user fees in all contexts and scenarios, so businesses must be taxed to build it.

Correct.
 

Section2

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It's not really that they can afford it. They have shareholders too. It's that they have an army of tax lawyers who can make their effect tax rate 0.
And their competitors don’t. Any way you slice it, it gives them a competitive advantage.
Big government and big business are natural allies.
 

MplsGopher

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And their competitors don’t. Any way you slice it, it gives them a competitive advantage.
Exactly why large corporations need to be taxed to pay for infrastructure that benefits/enables profit for all sizes of business.
 

Wally

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I'll wait to see what the actual impact becomes. As it's portrayed, I have no issue with it. But the reality will likely be, like it is with many things like this with good intentions, the small business owners, the companies with 5, 20, 50 or 85 employees will be the ones taking it up the ass. But hey, we can say that we "went after those evil CORPORATIONS".

If they actually follow through with this as they want people to think now, I'll stand and applaud. But color me skeptical

Yes that's how it works because money is buying the system. Its not set in stone that it has to work that way tho.
 

Section2

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Yes that's how it works because money is buying the system. Its not set in stone that it has to work that way tho.
Correct. Don’t let politicians sell anything, and there won’t be anything for corps to buy.
 

Section2

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Or we can live in the real world...
In the real world, corporations buy politicians for all the reasons you listed before. So? We just have to live with it? That happens. It’s reality. We should just accept it?

There is a much better way. You don’t really understand it, and it’s not a mainstream position. I get that. But we shouldn’t point out how awful the current system is, and how much better an alternative would be, because you think it’s not likely? What a sheep.

I can live with: that’s not a good idea and here’s why. The pathetic “reality” argument is for losers.
 

Section2

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A much better way. And it would be so easy! Just like Trump's Healthcare Plan.
I dont recall saying it would be easy. But Howie again thinks sarcasm and exaggeration make his arguments for him. Surely you know how easy it is to do what you do? Maybe I should try your style of posting for a month so you can see how pathetic it is.
 

Section2

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There is no practical way around it. Our best bet is a powerful media that exposes it and from there the voters must act.
No practical way around what? The reality is that the media is a part of the very system you are trying to control. The voters? They know absolutely nothing. The voters can’t hold the system accountable. The reality is that this system is here to stay. So by your own rules, just accept it and live with it.
 
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