The Left’s ‘Global Tax’ Proposal Will Crush Business And Put America Last

WASHINGTON, DC - MAY 15: Federal Reserve Chairwoman Janet Yellen speaks during an event hosted by the Small Business Administration at the U.S. Chamber of Commerce on May 15, 2014 in Washington, DC. The administration is holding events for National Small Business Week, highlighting the impact of entrepreneurs and small business owners on innovation and job creation.
T.J. Kirkpatrick via Getty Images

Earlier this week, Biden’s Treasury Secretary, Janet Yellen, argued in favor of a global minimum tax rate for corporations, regardless of their location, in an apparent bid to counter the impact of corporations moving business overseas in response to the Biden administration’s calls to increase corporate tax rates.

“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,” The New York Times reported. “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.”

“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.”

In reality, nothing Yellen is advocating for has anything to do with promoting competition. Instead, it has everything to do with stifling it, both at home and abroad.

Internationally, Yellen is attempting to leverage the scale of the American economy to bully other countries into capitulating to her demands that they agree not to compete. By raising the corporate tax rate in the United States, Yellen knows that businesses will look to move elsewhere. Rather than reacting to this honestly, the Biden administration is applying an “if I can’t have you, no-one can,” philosophy.

The number of subsequent concerns this raises is beyond worrying. What if one country refuses? What if the world economy suffers as a result? What if smaller countries implode economically, unable to compete? Let alone the concerns of globalism promoted by the mere notion of a “global” corporate tax rate.

Domestically, Yellen is openly admitting that the outcome of the Biden administration’s policies will almost certainly spark an exodus of businesses, with the inevitable result being a collapse in job numbers and job opportunities. What’s important to understand here, in addition to the absurdity of the policy in a pure mathematical sense, is that Yellen is forging forward despite this unavoidable outcome.

This is a pattern we see time after time when it comes to policies of the Democratic party. “Buy now, fix later.” They introduce a policy, and suggest future policies to help fix the obvious problems they will create, as if such potential solutions justify the real initial policy being imposed in the first place.

Whether or not the potential solutions are ever applied — or are even successful — is irrelevant, because they will have reached their immediate goal.

A goal they’re all too happy to achieve while leaving the “us of tomorrow” to handle the fallout.

Ian Haworth is an Editor and Writer for The Daily Wire. Follow him on Twitter at @ighaworth.

The views expressed in this piece are the author’s own and do not necessarily represent those of The Daily Wire.

Already have an account?
The Daily Wire   >  Read   >  The Left’s ‘Global Tax’ Proposal Will Crush Business And Put America Last