Biden sells G7 on global tax, but U.S. Congress is a hurdle

Biden administration officials believe the use of overseas tax havens has discouraged companies from investing domestically, at a cost to the middle class.

And for decades the middle class has been fobbed off with the empty promises of trickle down, supply side economics, " a rising tide lifts all boats".

Another name for this school of economics was "horses and sparrows". Feed the horses and the sparrows will eat from the horses' droppings.

I am sure Republicans will still invoke these same ideas, in the guise of nostalgic "Reaganomics", to oppose any new corporate tax measures.

Congress doesn't matter. They have no say in treaties. This would be a treaty.

The Senate matters. That's a problem for President Biden. The Senate has to ratify all treaties.

Section 2 of the US Constitution:

He shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur;

I don't know of any company that actually pays taxes. The customers pay taxes. Sure, corporations appear to pay, but they pass on all tax costs to their customers.

So the expectation is that you force a minimum of 15% tax, companies then just hand over this and go about their business? No moving HQ, no price rises, no benefit cuts, no consulting firms shopping around the loopholes to every company to take advantage of?

Will be interesting to see the actual results in 5 to 10 years, hope they don't pre-spend this money (probably already have).

Anything that makes giant companies pay their faire share is a good idea and should be implemented asap.

“President Biden has managed to do the impossible -- he has made it better to be a foreign company and a foreign worker than an American company and an American worker.”

Great foreign policy.

“President Biden has managed to do the impossible -- he has made it better to be a foreign company and a foreign worker than an American company and an American worker.”

Republicans are also easy prey for empty nationalism. Meantime, workers in other G7 nations have guaranteed health care that is not tied like a noose around their neck to a job, generous benefits including leave, so much so that they can take time off to riot when a neo-liberal like Macron tries to cut benefits and pensions. And make him reverse his decisions. Try that American worker.

Great foreign policy.

Republicans understand the economy about as much as a chicken understands the concept of jungian archetypes. Politicians who actually believe in trickle-down economics should be fired on the spot, put on a rocket and sent to mars.

Republicans view lower taxes as encouraging companies to invest and hire,

This has been proven false, with over 20 years of data backing it up.

The fact is that if proposing a 15% minimum tax is outrageous, then obviously you must understand corporations are already getting around the much higher current rates.

This minimum global tax is good, makes sense, evens the playing field between countries, and especially helps small businesses which drive America. Currently they have to compete with corporations using these tax havens that they don't have access to.

@The Fu

Congress doesn't matter. They have no say in treaties. This would be a treaty.

The Senate matters. That's a problem for President Biden. The Senate has to ratify all treaties.

The Senate is in congress.

Politicians who actually believe in trickle-down economics should be fired on the spot, put on a rocket and sent to mars.

To make mars wealthy ?

There is nothing I hate more than paying tax ! Did you read the story about 34M USD athlete health tracking app ? That is the problem with tax

There is nothing I hate more than paying tax ! 

Why?

Why?

So you like paying tax? smh

So you like paying tax? smh

I don't know about you, but I like well-funded schools and nicely-maintained roads. I certainly don't mind paying taxes for these things, and as businesses rely upon these things to run their businesses, it's only appropriate they pay their own fair share.

So you like paying tax? smh

So why do you hate paying taxes?

If only biden wasn’t handing out tax breaks to huge corporations there wouldn’t have been a need to have a minimum tax. Claim you are making a green product- lose multi-millions and write it all off on your taxes just like GE did.

If only biden wasn’t handing out tax breaks to huge corporations there wouldn’t have been a need to have a minimum tax. 

You obviously live in an alternate reality.

I don't know about you, but I like well-funded schools and nicely-maintained roads.

So then why aren’t the majority of minority schools in heavily governed Democrat States in cities so bad or the roads overwhelmingly?

https://www.zippia.com/advice/states-worst-infrastructure/

https://www.bostonherald.com/2020/03/30/progessive-cities-failing-black-education/

I certainly don't mind paying taxes for these things, and as businesses rely upon these things to run their businesses, it's only appropriate they pay their own fair share.

I definitely mind paying taxes for things have nothing to do with what Democrats are asking for. If they ask for 2.3 trillion and 97% of that goes to fund socialistic entitlements you will have more people with money, move their money or put it in other investments.

So why do you hate paying taxes?

Because of the invisible layer of inefficient bureaucracy in between my money and public benefit.

Because of the invisible layer of inefficient bureaucracy in between my money and public benefit.

So you don't hate paying taxes per se, you hate the "inefficient bureaucracy". And what system would you find more satisfactory exactly?

Yes US Congress is a hurdle even more so now. The Dems finally had to call out their own for anti-Semitism.

Now they lost the votes of all 6 members of the "Squad" as they pout and "clap back" to call their own party members "Islamophobic" and "anti-Black".

There goes that majority and supposed mandate.

Governing is hard.

n1k1: Because of the invisible layer of inefficient bureaucracy in between my money and public benefit.

Valid argument. Everyone supports better education, police, fire, etc. But any inefficiencies in the system just creates money going down the drain.

Biden has not given tax breaks to anyone to date.

More corporations leaving

https://www.cnbc.com/2021/01/23/why-companies-are-fleeing-california.html

The current tax position is the same as under Trump

That will change once the Trump tax code expires.

https://finance.yahoo.com/news/presidentelect-bidens-tax-plan-will-likely-make-companies-leave-the-us-nyc-billionaire-businessman-catsimatidis-163719916.html

President Trump’s 2017 tax cuts reduced the corporate rate to its current 21% from 35%, one of the highest in the world. Biden wants to raise the rate to 28%, which is still lower than it’s been anytime between World War II and Trump’s tax cuts. Biden also supports a so-called “Amazon Rule,” which involves a 15% minimum tax rate on net annual income for corporations making over $100 million a year. It’s a way to prevent companies including Netflix, Starbucks and the rules’ namesake from dodging their tax bill because of loopholes and special tax breaks.

On individuals, Biden proposes raising the income tax rate on people who earn over $400,000 a year from 37% to just under 40%, as well as raising the capital gains tax rate for the nation’s highest earners.

Ok, so less investment into the economy, workers, less hiring, yes, please continue to help the GOP 2022

I want to pay my fair share of taxes, but not one penny more. For about a decade, my taxes were more than my father earned at his peak salary. I was never "wealthy", but I'm not bad with money either.

What corporations like is a predictable financial situation. Change is what they don't like, unless it is clearly in their favor to keep more money. With a few weeks of any changes to tax laws, their CPAs and lawyers will have created a new plan to minimize taxation under the new conditions. If the laws appear to be against other laws, they will sue the govt, hoping to get more favorable tax laws for their specific company.

There's something called the AMT in the US tax laws. Basically, it means that people who are paid lots of money must pay at least that much tax. There are ways around it by putting most of your assets into a trust and companies would find a way to get around something similar, since Congress will always make tax laws with loopholes.

To remove the loopholes, taxes need to be very easy to calculate for everyone. Of course, the accountant lobby will be against that, since they like their $250K/yr jobs.

By having the G-7 all involved in this 15% minimum, it is more likely that other countries where their is rule of law will adopt the same rules. But regardless, the taxes will be passed through to customers. That's how companies pay for everything - well - that's how profitable companies pay for everything. The Tech industry has investors who will thrown $50M at people who have never made any profit. Tesla was like that for a long time. I'm not certain whether recent profits have covered all the years of losses yet.

Ok, so less investment into the economy, workers, less hiring, yes, please continue to help the GOP 2022

lolz The Trump tax cuts never resulted in higher wages for workers. They received billions in tax cuts and workers got crumbs. Rich businesses need to pay their fair share, as should the rich.

*President Trump’s 2017 tax cuts reduced the corporate rate to its current 21% from 35%, one of the highest in the world. Biden wants to raise the rate to 28%**, which is still lower than it’s been anytime between World War II and Trump’s tax cuts.*

Your quotes undermine your own argument. Raise the rates on the highest earnings to between 75% to 90% like under the Eisenhower/Kennedy administrations and make America great again and see strong middle class wealth.

So you don't hate paying taxes per se, you hate the "inefficient bureaucracy". And what system would you find more satisfactory exactly?

Me personally I prefer a low tax system. Unsupervised mandatory 5% of income for Competitive Military and Police ! Mostly because it makes it easier to accumulate wealth.

Chasing rich US Companies around the world for tax is definitely not the solution to this problem low tax however is.

Me personally I prefer a low tax system. Unsupervised mandatory 5% of income for Competitive Military and Police ! Mostly because it makes it easier to accumulate wealth.

Right. So how do you pay for roads, health care, hospitals, libraries, parks, bridges...?

you pass an infrastructure bill and identify how to pay for it with money you have.

as a priority over all the social justice causes and global warming. as a responsible adult would.

same as I pay my rent as a "need" before I start spending money I dont have on "wants".

Right. So how do you pay for roads, health care, hospitals, libraries, parks, bridges...?

For libraries you don't pay because there is wikipedia and it runs via donations.

Separate for health care, pooling money could work okay.

The schools should all be not for profit audit-able orgs . For those who can't pay I think google can build something online that will work great. For those who don't like school , you've got prisons also other not so cool jobs.

Beautiful Parks can be businesses. Foe just jogging you can go to the nearest mountain

Hospitals should all be military !

For bridges and roads whoever needs them should pay for them.

Prisons can be generate revenues

And that is just me in 5 min of being bored.

its not like the government doesnt already take the money from us to pay for it.

priorities. The earth will not explode into flames tomorrow if the USA doesnt spend 1 to 30 trillion on climate change.

The federal government collected revenues of $3.5 trillion in 2019