INEPTOCRACY CHRONICLES – Biden And G20 Leaders Endorse Corporate Global Minimum Tax
The poor do not understand that a corporate tax is nothing more than a tax on everyone who buys anything and everything . . . It's time we educated them . . .
Photo by Gage Skidmore
November 2, 2021
| Marie Finn | Politics | 23
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World leaders united at the G20 summit to announce their support of a global minimum tax to prevent large corporations from evading taxes.
“Here at the G20, leaders representing 80% of the world’s GDP — allies and competitors alike — made clear their support for a strong global minimum tax,” Biden tweeted. “This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.”
Biden had previously pushed for a 21% tax rate, but at a 15% global minimum, the U.S. is set to earn $60 billion a year in revenue by eliminating the tax incentives for corporations to operate overseas.
In the current economy, multinational corporations can avoid paying out on profits by assigning earnings to subsidiaries in countries with low tax rates. As of 2016, half of U.S. corporate revenue was assigned to foreign tax havens, but the G20 announcement could render them useless.
Under a global minimum tax, companies with annual revenue over $864 million would pay at least 15% in the nation they are headquartered in, and any earnings that allocated towards tax havens will occur a top-up tax in the organization’s home country, which would guarantee they paid the full 15% tax.
“The deal works because it removes the incentives for the offshoring of American jobs. It’s going to help small businesses compete on a level playing field, and it’s going to give us more resources to invest in our people at home,” a senior administration official said.
“It’s a game changer for American workers, taxpayers, and businesses, and in our judgment, this is more than just a tax deal – it’s a reshaping of the rules of the global economy.”
G20 finance ministers had agreed to a global minimum tax in July, but the Saturday announcement out of the summit in Rome marked their official endorsement.
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MARIE FINN
Ineptocracy
A system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.