(ConservativeHub.com) – Several countries have enacted tax policies designed to lure multinational businesses over the past 30 years. Companies like Facebook have moved some of their operations overseas to countries with low tax rates to avoid paying higher taxes in the United States.
President Biden unveiled his “American Rescue Plan” on March 31. It calls for an increase in the current domestic corporate tax rate to 28%. The Biden administration then came out in support of a global minimum tax rate on April 7, in an apparent effort to prevent American companies from moving overseas to avoid that proposed increase.
Treasury Secretary Janet Yellen argues that a global minimum corporate tax rate will end what she calls a “race to the bottom” that makes it hard for the U.S. to meet its revenue needs.https://t.co/IOSkpgn1iL
— MarketWatch (@MarketWatch) April 8, 2021
However, Republicans typically don’t support tax increases. Sen. Pat Toomey (R-PA) is already pushing back on the idea of a global minimum tax rate, saying Republicans should reverse any tax hikes Biden might push through when they regain control of the Senate.
Experts have also predicted that the G-20 and the Organization for Economic Cooperation and Development (OECD) wouldn’t support Biden’s proposed rate for a global minimum tax. Still, negotiations with the OECD are ongoing in hopes that an agreement can be reached.
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