Enforcing a global minimum tax rate is a high priority for the Biden administration as it seeks to raise taxes in the US to fund its welfare spending programs, said Tim Phillips, president of Americans for Prosperity.
Phillips spoke to Kitco News Editor-in-Chief Michelle Makori at FreedomFest 2021 in Rapid City, South Dakota.
Treasury Secretary Janet Yellen announced in early July that 130 countries around the world have agreed on a global minimum tax rate. The government claims this would end the practice of global corporations looking for low-tax areas to move their headquarters out of the US
Philips claims that it is an international agreement that should be passed by Congress first.
“The global minimum tax rate should be seen as an agreement and that means the Senate would have to approve it,” Phillips said. “I don’t think there would be any support for this in the Senate. But there were worrying precedents with the Paris climate agreement and the Iranian nuclear deal, which the Senate never ratified,” said Phillips.
Phillips is concerned that Congress could be bypassed, however. “The Paris Climate Agreement, which was originally a treaty, was signed by Obama and the Senate would clearly oppose it, so he made it an agreement that is the same as the treaty. You just call it an agreement. Obama unilaterally approved it, which comes dangerously close to the American executive, which is Imperial. ”
The Biden Administration’s Infrastructure Act includes a plan to raise the corporate tax rate to 25% or 28%. A global minimum tax rate of 15% would be less detrimental to America’s competitiveness on the world stage and was promoted by Treasury Secretary Janet Yellen and endorsed by the G20.
The aim is for the world’s heads of state and government to finalize the agreement at a summit in Rome in October.
“What a loss of freedom for the people in these individual countries. This is an idea of many of the elites who know them best,” said Phillips. “It’s a terrible idea. Each country should decide for itself.”
For the full interview with Tim Phillips on how Americans For Prosperity is campaigning against lavish government spending, see the video above. Follow Michelle Makori on Twitter:
@ Michelle Makori.
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