Friday, March 30, 2012

Biden: "We Want To Create A Global Minimum Tax"

Biden calls for a global minimum tax. Governments oppose tax competition because it greatly benefits low tax nations who aren't spending themselves into bankruptcy. Biden's logic is deeply flawed. Yes, capital is parking its butt in low tax nations but that's because the US has embarked on a policy to chase capital offshore. Congress has literally legislated low tax treatment for corporations who earn their profits offshore while taxing profits earned on US soil at higher rates. This has not only been going on for decades, it has resulted in decimating domestic manufacturing. Capital flows according to the laws of financial gravity and will always seek the most capital friendly abodes.
"For years, American manufacturers have faced one of the highest tax rates in the world. We want to reduce that by over 20%. We want to drop the rate, particularly, for high-tech manufacturers like you, Mr. President, even further than the 20%," Vice President Joe Biden said at a manufacturing plant in Davenport, Iowa this week. "We want to create (what's called) a global minimum tax, because American taxpayers shouldn't be providing a larger subsidy for investing abroad than investing at home," Biden said at a campaign event.
Read the rest here
Real Clear Politics