Economic globalization is good.
Political globalization is bad.
Treasury Secretary Janet Yellen’s latest proposal shows why globalism is horrific for freedom and the free market.
Speaking to the Chicago Council on Global Affairs, Yellen revealed that she will be pushing for a global minimum tax rate to end a “30-year race to the bottom on corporate tax rates.” Yellen noted that she would use her participation in the International Monetary Fund and the World Bank to advance his idea.
Because President Joe Biden is calling for a 28% corporate tax rate to fund his $2 trillion (and counting) infrastructure plan, Yellen thinks that the U.S. would be at a disadvantage to other nations that possess lower tax rates. This would allow corporations to move operations to another country and enjoy lower taxes.
Overall, the former Federal Reserve Chair wants to “end the pressures of tax competition” and ensure that governments “have stable tax systems that raise sufficient revenues in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”
“I am urging our partners to continue a strong fiscal effort and avoid withdrawing support too early, to promote a strong recovery and help avoid the emergence of global imbalances,” she said.
Would countries like Luxembourg and Ireland ever go along with such a scheme?
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