Janet Yellen to call for unified global corporate tax rate

[AndySt]

You can not call for a global unified corporate tax rate when you are not fully aware of the economic state of other countries,  there are many countries who's economic are in a bad state and needs the support of advanced countries like the USA for continuous survival, how do you tell such countries to increase tax rate from 21% to 28%, maybe with the 21% tax most companies already producing at loss, some must have fold up and seek better alternatives elsewhere,
I don't see many countries accepting this call, otherwise that will mean a deliberate economic self destruction. The earlier they forfeit this ridiculous idea the better for everyone.

I don't think even Janet Yellen herself is sure that other countries will support her call. It's just that campaign promises were made to raise corporate taxes if a representative of the Democratic Party wins, and now it's time to show the voters that the work on fulfilling the promises is underway. There is information that the proposed increase in the tax rate can be withdrawn from individual states, which with their reduced rates would not mind attracting corporations to their territory.

[Silberman]

In preparation for the Biden's administration planned hike of the US corporate tax from 21% to 28%. Janet Yellen will propose G20 nations coordinate to legislate a global corporate tax rate to prevent amazon and others from moving operations from the USA to other nations with lower corporate taxes.

This conflict is a macrocosm of current events. Where Elon Musk and tesla fled high taxation california for low taxation texas. States like new york and california have hemorrhaged a steady outflux of residents and business to states with lower taxes like florida over the last few years.

There is a question of whether countries like puerto rico would support a planned global corporate tax. Many nations could stand to lose significantly if they were forced to raise corporate taxes. Low corporate taxes are how some countries attract business and residents to invest in their regions. Would they be willing to part with some of their key economic and financial advantages simply for the sake of punishing US corporations like amazon with higher taxes?

This is called tax harmonization and it has been the dream of US policy makers for decades, but it is never going to happen, countries are not going to go against their own self-interests just because the US wants this to happen, many countries depend on low or no taxes to bring capital to their countries and they are not going to let go of their main form of income just for the US government to be happy, so they will fail on their mission and many businesses are going to leave the US as they are not going to tolerate to pay more taxes especially after a pandemic left them in a difficult economical position.

[Sithara007]

I don't think even Janet Yellen herself is sure that other countries will support her call. It's just that campaign promises were made to raise corporate taxes if a representative of the Democratic Party wins, and now it's time to show the voters that the work on fulfilling the promises is underway. There is information that the proposed increase in the tax rate can be withdrawn from individual states, which with their reduced rates would not mind attracting corporations to their territory.

I don't know what sort of people vote for a party that promises to increase the taxes. And look at the people who are supporting this move. Amazon has evaded taxes for long, using various loopholes. They have welcomed the rise in corporate tax (fully knowing that they will be able to evade paying most of it once again). Those corporations which are honestly paying their taxes such as Tesla have reacted negatively to this news. 

[Kittygalore]

Trump is a very weird person and made some bad decisions, but here we see how much good he made reducing taxes...

I think any "unified global tax rate"  would be terrible, and specially good for China. They will not follow those rules and will get benefits from it.

Those global pacts usually also hurt the sovereignty of the countries, which won't be able to attract companies when they need to create more jobs, neither get more money from taxes when they need...

My 2 cents, I think the less rules, the better. Governments world wide already make so many rules, we don't need a "central government" with more rules to all of them.

Trump is not weird, he was smart actually, his term were focused on taking care of laws that will protect his businesses and its interest and making sure that opposition is going to have a hard time. You don't have to worry about China because they are part of the G20 and right now, Chinese labor is getting expensive, have you heard that Apple is slowly moving towards India.

[Poker Player]

I don't know what sort of people vote for a party that promises to increase the taxes.

Those who think that the taxes are going to be paid by the rich, when in reality the middle and working classes bear the brunt of the tax burden. Yelen must be desperate. She knows that tax hikes often result in lower revenues, which is why she is making this move. Basically, what they want to do is to continue squandering money and not have any consequences, but they cannot.

[Vishnu.Reang]

Those who think that the taxes are going to be paid by the rich, when in reality the middle and working classes bear the brunt of the tax burden. Yelen must be desperate. She knows that tax hikes often result in lower revenues, which is why she is making this move. Basically, what they want to do is to continue squandering money and not have any consequences, but they cannot.

The rich never pay their tax, because most of their income is in the form of assets that are stored in off-shore tax havens and capital gains. And capital assets are taxed only if they are sold. There is no tax applicable on unrealized capital gains. All these tax increases will have the maximum impact on the middle class, especially those living in high-tax states such as California and New York. The same with corporate tax as well. If they increase the corporate tax, then the companies will move out to Mexico and other low-tax countries and American products will be unable to compete against Chinese products. Also, middle-class and poor Americans will lose their jobs, as the factories close down.

[oHnK]

In preparation for the Biden's administration planned hike of the US corporate tax from 21% to 28%. Janet Yellen will propose G20 nations coordinate to legislate a global corporate tax rate to prevent amazon and others from moving operations from the USA to other nations with lower corporate taxes.

Trump is a very weird person and made some bad decisions, but here we see how much good he made reducing taxes...

I think any "unified global tax rate"  would be terrible, and specially good for China. They will not follow those rules and will get benefits from it.

Those global pacts usually also hurt the sovereignty of the countries, which won't be able to attract companies when they need to create more jobs, neither get more money from taxes when they need...

My 2 cents, I think the less rules, the better. Governments world wide already make so many rules, we don't need a "central government" with more rules to all of them.

I also see that, some of Biden's policies seem too hasty without visionary thinking.  To be honest about this tax, it will definitely be burdensome for many entrepreneurs in the USA and good news for its rival countries.  As long as Trump became president he continued to carry out policies until a trade war broke out.  China is the country that has benefited the most from this.  The Chinese businessmen are subsidized by the government, while the USA instead burdens them with taxes.  In the midst of this pandemic, not many relaxation policies for financial ones have been exacerbated by Biden's policy in the name of building infrastructure.  Is this what all the people expect from the elected president?

[Sithara007]

I also see that, some of Biden's policies seem too hasty without visionary thinking.  To be honest about this tax, it will definitely be burdensome for many entrepreneurs in the USA and good news for its rival countries.  As long as Trump became president he continued to carry out policies until a trade war broke out.  China is the country that has benefited the most from this.  The Chinese businessmen are subsidized by the government, while the USA instead burdens them with taxes.  In the midst of this pandemic, not many relaxation policies for financial ones have been exacerbated by Biden's policy in the name of building infrastructure.  Is this what all the people expect from the elected president?

This is exactly why the white working class voted en masse for Trump, despite his immaturity with some of the issues. They understood that Biden as the president could destroy their jobs. And Biden and his team has not disappointed us. As soon as he took charge as the POTUS, he started increasing taxes. The Republicans are facing a big dilemma now. In the states ruled by them, they have decreased the taxes and thereby created lot of new jobs. I am talking about states such as Texas, Georgia and Florida. But this job creation in turn attracts the jobless Democrat supporters from broke states such as California and New York, and eventually makes these states Democrat leaning. This is exactly what happened in states such as Arizona and Georgia during the 2020 elections.

[SaiyanSS3]

Global tax and the receiving end would be the bitch alone? This give whore a new meaning.

[Fortify]

It does make sense to have a minimum corporation tax enforced across all countries because the super rich are basically taking advantage of every single hard working person when they move their money around. There are so many legally acceptable but morally fraudulent schemes going around that ends up in them paying tiny amounts of tax in many cases. For example creating a company in a zero tax country and using that to charge a "brand usage" fee to companies in countries where they actually make all their income, in effect making all profits disappear through some lame scheme that only exists to benefit the few. The rich get to take advantage of well functioning societies while paying almost nothing back into them and it is a form of abuse, a minimum tax rate would go a long way to stopping it by making tax havens largely redundant.

[oHnK]

This is exactly why the white working class voted en masse for Trump, despite his immaturity with some of the issues. They understood that Biden as the president could destroy their jobs. And Biden and his team has not disappointed us. As soon as he took charge as the POTUS, he started increasing taxes. The Republicans are facing a big dilemma now. In the states ruled by them, they have decreased the taxes and thereby created lot of new jobs. I am talking about states such as Texas, Georgia and Florida. But this job creation in turn attracts the jobless Democrat supporters from broke states such as California and New York, and eventually makes these states Democrat leaning. This is exactly what happened in states such as Arizona and Georgia during the 2020 elections.

But what is quite surprising about this policy is the support of the world's richest man Jeff Bezos for tax increases. Even though in 2016, this issue had developed, but Bezos opposed the policy and was a little hostile to Biden at this time. I'm a little surprised why now Bezos even fully supports this too forced plan? Is Bezos' support just a subtle hint at Biden for his pretty tense past regarding Amazon's corporate taxes?

[fiulpro]

What I do know is :
It is completely unreasonable to increase the tax rates during pandemic. What is their thinking ? They do want to increase the tax of the people who have lost their jobs and if they think this would help their country to prosper this is very wrong. What they can do is , to increase the tax rates of a particular section of the society. The people who are very well off and more like the bulls of the economy they should be the one's paying these unreasonable taxes if the situation is so dire. First the Government of the US is taking loads of money from other countries, then they expect to pay it using people without jobs ? How about the Government finally tries to understand the situation of unemployment.

Honestly I did not expect this from Biden.. "Unified Global Tax Rate" is honestly so stupid. This would not work and also their application would be even more harder to do in practical rather in papers.

A little quote from a website :

Sharing Profits. The OECD's overall goal is to create a unified global corporate tax system whereby multinational businesses are taxed where profits are earned, regardless of physical presence. Combined, Pillar 1 and Pillar 2 are expected to raise an additional 4%, about $100 billion, in corporate tax dollars globally

https://news.bloombergtax.com/daily-tax-report/the-corporate-tax-revolution-is-coming-are-we-ready

[magneto]

It does make sense, but not in the way that Yellen envisions it.

It is the US and other advanced economies who needs to lower their corporate tax rates in order to converge with the rest of the world. Their cost of doing business is simply too high for any major startups to launch there. Unfortunately the pool of talent in the U.S. means that they can get away with charging these high corporate tax rates, but I suspect not for long until major firms start moving offshore too (already happened with a bunch of them).

Instead of blaming the competition, how about reflecting internally for once and adjusting your policy accordingly?

Completely agreed. Janet Yellen seems to have lost her mental balance and that may be the reason why she is making such absurd statements. Take this - the American government increases the corporate tax in their jurisdiction from 21% to 28% and then orders the other countries to do the same. What do they think they are? The days of colonialism are over, and the other countries don't need to listen to deranged people like Yellen. If the regime is worried that more and more companies may move abroad due to high taxes, then they need to decrease them. On the other hand they have gone for a tax increase when the companies are getting whacked by the pandemic and the biggest tax evader (Jeff Bezos) is supporting the move.

Yup.

We don't live in la-la land. From a pragmatic standpoint anyway, does Yellen really think that jawboning alone would work on foreign countries in which affording TNCs an attractive tax rate is the only source of government income?

Be realistic here. If talent and capital retention is the name of the game, then the U.S. Treasury and Fed have to do something proactively. Jawboning and asking other  is neither morally right nor practically doable.

[Gyfts]

I also see that, some of Biden's policies seem too hasty without visionary thinking.  To be honest about this tax, it will definitely be burdensome for many entrepreneurs in the USA and good news for its rival countries.  As long as Trump became president he continued to carry out policies until a trade war broke out.  China is the country that has benefited the most from this.  The Chinese businessmen are subsidized by the government, while the USA instead burdens them with taxes.  In the midst of this pandemic, not many relaxation policies for financial ones have been exacerbated by Biden's policy in the name of building infrastructure.  Is this what all the people expect from the elected president?

This is exactly why the white working class voted en masse for Trump, despite his immaturity with some of the issues. They understood that Biden as the president could destroy their jobs. And Biden and his team has not disappointed us. As soon as he took charge as the POTUS, he started increasing taxes. The Republicans are facing a big dilemma now. In the states ruled by them, they have decreased the taxes and thereby created lot of new jobs. I am talking about states such as Texas, Georgia and Florida. But this job creation in turn attracts the jobless Democrat supporters from broke states such as California and New York, and eventually makes these states Democrat leaning. This is exactly what happened in states such as Arizona and Georgia during the 2020 elections.

White people always vote republican, and they didn't vote for Trump last election cycle. He lost white suburban moms because his twitter use was unstable. I don't think many people were worried about tax increases when they shifted their vote from Trump to Biden. All they wanted was normalcy, aka a guy without a compulsive twitter addiction.

[paxmao]

This has made the news, but it is even more interesting the fact that Jeff Bezos, one of the persons who could benefit the most from financial structures around the world, has actually stated that he supports the proposal. Since people rarely want to give away in taxes more money this leads me to think that either he is sure this is simply not happening or that he knows how to avoid it anyway.

Anyway this is not going to happen. Even Delaware, which is actually the home state for Biden himself, is at all effects a tax haven.

Joseph Robinette Biden Jr. (/ˈbaɪdən/ BY-dən; born November 20, 1942) is an American politician who is the 46th and current president of the United States. A member of the Democratic Party, he served as the 47th vice president from 2009 to 2017 under Barack Obama and represented Delaware in the United States Senate from 1973 to 2009.

[Sithara007]

White people always vote republican, and they didn't vote for Trump last election cycle. He lost white suburban moms because his twitter use was unstable. I don't think many people were worried about tax increases when they shifted their vote from Trump to Biden. All they wanted was normalcy, aka a guy without a compulsive twitter addiction.

Social media platforms were up in arms against Trump, and a lot of suburban voters got swayed by the campaign from corporations such as Twitter, Google and FaceBook. So the choice was between a president who is not liked by the social media and in favor of low taxes, and someone who is the darling of social media and in favor of high taxes. The American voters made their choice and I congratulate them. I hope they are now happy with the tweets that are coming out of the official POTUS handle. Obviously that is a higher priority when compared to taxes, employment and economic growth.

[DooMAD]

So the choice was between a president who is not liked by the social media and in favor of low taxes, and someone who is the darling of social media and in favor of high taxes. The American voters made their choice and I congratulate them. I hope they are now happy with the tweets that are coming out of the official POTUS handle. Obviously that is a higher priority when compared to taxes, employment and economic growth.

So we're back to the "Republicans are always good for the economy" trope?  If it isn't already absurd enough that nations chase perpetual economic growth, surely it's even more absurd when they think they can achieve that by cutting their way to growth?  I'll never understand republicans/conservatives.  They don't want to pay for public services, but they still expect them to not only function, but function well.  It's truly baffling.   

[oHnK]

White people always vote republican, and they didn't vote for Trump last election cycle. He lost white suburban moms because his twitter use was unstable. I don't think many people were worried about tax increases when they shifted their vote from Trump to Biden. All they wanted was normalcy, aka a guy without a compulsive twitter addiction.

Whites belong to the Republic, but do you realize they are currently in opposition to the policies of the elected president.  Republican party members also considered Biden's infrastructure development plans too expensive, rushed and lacked proper planning.  They do not support this policy at all. Even the Democrats will carry out this law with their own party without the support of the Republic.  As was the case before, Biden's policy of pouring tens of thousands of trillions of USD was just for the pandemic.  It seems much better for a president whose tweet is unstable than a president with policies that are burdensome to society.

[bryant.coleman]

So we're back to the "Republicans are always good for the economy" trope?  If it isn't already absurd enough that nations chase perpetual economic growth, surely it's even more absurd when they think they can achieve that by cutting their way to growth?  I'll never understand republicans/conservatives.  They don't want to pay for public services, but they still expect them to not only function, but function well.  It's truly baffling.   

I am not an American, but still I would say that Republicans are much better for the economy than the Democrats. How can you claim that Democrats are in favor of economic growth, when they are increasing taxes left, right and the center? All they have done ever since they came to power is to distribute some $400 billion in cash mostly to individuals who don't need them and to spend another $1.5 trillion to failed cities and unions. If this is your idea for economic growth, then I would disagree. Public services were fully functioning when Trump was the president, and for that he didn't raised the tax levels.

[sana54210]

I am not an American, but still I would say that Republicans are much better for the economy than the Democrats. How can you claim that Democrats are in favor of economic growth, when they are increasing taxes left, right and the center? All they have done ever since they came to power is to distribute some $400 billion in cash mostly to individuals who don't need them and to spend another $1.5 trillion to failed cities and unions. If this is your idea for economic growth, then I would disagree. Public services were fully functioning when Trump was the president, and for that he didn't raised the tax levels.

You do not have to be republican, all you have to be is a person who hates left and you would be supporting republicans in USA, that's all it takes. How do I know you are a person who hates leftists in anywhere in the world? Simple, you say that Democrats are increasing taxes left right and center, whereas they have not increased taxes yet and only proposition was to increase taxes on people who earn over 10 million dollars a year.

Do you think that's bad? In a world where economy is horrible because of pandemic, increasing taxes for people who profit more than 10 million dollars should not pay a bit more taxes?

Any person who sees "tax increase" and think that leftists are ruining economy are the reason why we do not have a proper world. We have 300+ million people who are making under 200k dollars a year, and over half of that makes less than 70k per year, and all we need is people with 10+ million profits per year to pay a bit more taxes so we can make the world better place for everyone, why is that so bad?