The New American: No less than 136 countries have reached a deal that would set a global minimum corporate tax rate of 15 percent. The Organization for Economic Cooperation and Development (OECD) announced the agreement on Friday.
The United States is one of those 136 countries.
Among other things, the deal is meant to stop the practice of corporations setting up operations in countries with low corporate taxes in order to avoid punitive taxation in some countries.
According to the terms of the agreement, corporations in the 136 signatory countries will be subject to a 15 percent tax beginning in 2023.
“The landmark deal, agreed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MNEs (Multinational Enterprises) to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits,” said a statement on the OECD’s website.
Negotiations for the global corporate tax rate have been ongoing for several years. Reportedly, talks heated up this year with strong support from the Biden administration in America, with Treasury Secretary Janet Yellen leading the charge. Read More …
Opinion: First, corporations don’t pay taxes, people do. When a new tax is placed on a corporation they simply raise their prices, thereby passing the increase onto the middle class and poor. The rich, or 1% (‘oil and wine’ Rev. 6:6) will barely feel the pinch.
Second, the US congress is evenly split for and against this pernicious tax.
And in the United States, any such change in tax codes would require the agreement of Congress, which under the U.S. Constitution possesses all federal legislative powers. And since the OECD’s plan is international in nature, the new corporate minimum tax would, in effect, have the weight of an international treaty. Under the Constitution, the Senate must ratify a treaty with a two-thirds majority (67 votes). Also, a treaty cannot abrogate the clear provisions of the Constitution any more than simple legislation can. If a treaty does so, then it is an unconstitutional treaty.
That would be comforting if not for the recent progressive take-over of the US government.
Of course, the Biden administration could likely go the same way that former President Barack Obama did with the Paris Climate Agreement and simply sign the deal without calling it a treaty.
Globalists have never met a tax they didn’t like. On the drawing board to pay for the $5 trillion that the president is pushing:
- Massive income tax increase
- Realized capital gains tax increase
- Unrealized capital gains tax
- Global minimum tax
- Carbon taxes,
- Value added (VAT) tax
- Environmental Social and Corporate Governance (ESG) Tax
Open wide, it tastes just like cherry.