Global minimum tax is a bad deal for American consumers

 John Horvat II:

The name "Global Minimal Tax" should immediately set off red flags. No American likes to hear the two words “global” and “tax” in the same expression. It implies a surrender of sovereignty to a vague and mysterious world body. They also don’t like to see “minimal” and “tax” together. Experience shows that taxes rarely stay minimal and tend to become maximal. Based on the name alone, it is best to trash the whole idea.

However, the Biden Administration wants to approve this disastrous idea. The three words that sound so threatening are proposed in the name of two words that everyone wants to see restrained: “Big Tech.” Thus, Treasury secretary Janet Yellen is lobbying Congress, asking them to “please jump from the frying pan into the fire” to rein in Big Tech. American participation -- she claims -- will also show goodwill in cooperating with the “world community.” That’s two more ambiguous words that don’t belong together.

A Flawed Plan that Bodes Ill for the Nation

Everything about Global Minimal Tax screams No! Yet the administration is asking for an inexcusable yes. Americans should go with their gut instinct and reject the measure. The tax treaty will set dangerous precedents, unfairly target American industries and surrender tax sovereignty.

The project is the work of the Organization of Economic Co-operation and Development, which proposes a global tax treaty with two parts. OECD claims that the first part would attack the revenue-shifting practices of Big Tech firms that take advantage of foreign tax structures to avoid paying taxes on profits. It says the second provision is to level the tax playing field by establishing a Global Minimal Tax rate of fifteen percent on large multinational firms. OECD claims it would do this by cracking down on business-friendly tax-havens.

...

Greedy governments are the only serious opposition to "business-friendly tax-havens."  These so-called "tax havens produce jobs and they also produce goods and services at a lower price which benefits consumers.  Price fixing schemes are prohibited for businesses under the anti-trust laws.  They should also be prohibited for governments who are greedily trying to suck up more revenue for vote-buying schemes.

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