Under intense prodding from Washington a just-concluded confab of 136 nations agreed to new rules for taxing international companies.
This segment of What’s Ahead explains why this is a bad deal for the U.S. and should be scuttled by Congress.
The Administration hopes to sell a bill of goods to reluctant senators: Other countries are raising corporate taxes, and so should we. That’s not likely to work; if the Biden increase goes into effect, only Portugal and Colombia will have higher corporate tax rates than the U.S.
Its other argument is more nefarious. Long story short, the Administration now wants to change the way companies calculate their tax liabilities on international profits. Combined with the new global tax regime just negotiated, U.S. companies could be hit hard with higher taxes. The White House’s message to them: Go along with our proposed increase that’s now before Congress, and you’ll avoid this wallop.
Congress’ response should be no to the Biden hike and and no to this new global agreement.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.
Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.
Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).
Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.
In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.