Governments are work together to make taxpayers more money – here and around the world.
Treasury Secretary Janet Yellen urges countries to set a global minimum corporate tax rate. And plans are underway to do the same for individuals.
Officials in the G-20, the world’s largest economies, are busy formulating plans for a global minimum tax.
High-tax countries like France and Germany are enthusiastic supporters. Biden’s government plans to enact the highest corporate taxes among developed countries and believes that a high global minimum corporate rate will mitigate the damage the administration’s new rates would do to our competitiveness.
Yellen justifies her idea with the fact that there is a devastating “race to the bottom” in terms of taxation. Facts show that it is nonsense. What they and other tax and spending policymakers hate is that countries – and here at home different states – are making their economies friendlier by reducing their tax burdens.
For example, in the US, New York increases its highest income tax rate to 15%, while Florida has no state income tax. People are fleeing New York to the Sunshine State.
If Yellen-like properties aren’t thwarted, economies will be damaged – and so will stock prices.
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Steve Forbes is the chairman and editor-in-chief of Forbes Media. Steve’s latest project is the “What’s Ahead” podcast, in which he engages the world’s best newsmakers.
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Steve Forbes is the chairman and editor-in-chief of Forbes Media. Steve’s latest project is the What’s Ahead podcast, in which he engages the world’s leading news makers, politicians and pioneers in business and commerce in honest conversations to challenge traditional conventions and Steve’s distinctive views on the intersection of society, business and commerce Present politics. Steve helped create the recently released and critically acclaimed public television documentary, In Money We Trust ?, which was produced under the auspices of Maryland Public Television. The film was inspired by his co-author, Money: How the Destruction of the Dollar Is Threatening the Global Economy – And What We Can Do About It. Steve’s latest book is Reviving America: How Obamacare Repeal, Tax Legislation Replaced, and Fed Reform Restore Hope and Prosperity, co-authored by Elizabeth Ames (McGraw-Hill Professional). Steve writes editorials for every issue of Forbes under the heading “Fact and Comment”. A widely recognized economic forecaster, he is the only writer to have won the highly regarded Crystal Owl Award four times. The prize was previously awarded by the US Steel Corporation to the financial journalist whose economic forecasts for the coming year have proven to be the most accurate. In both 1996 and 2000, Steve campaigned vigorously for Republicans to be nominated for the presidency. The keys to his platform were a flat tax, medical savings accounts, a new social security system for working Americans, parents’ choice of schools for their children, deadline limits, and strong national defense. Steve continues to be a strong advocate of this agenda.