Warning: Tax Collectors Around The World Are After You!

Tax collectors are coming after you as never before. This is bad news for a sustainable global economic recovery from the pandemic. 

U.S. Treasury Secretary Janet Yellen is proposing that countries around the world enact a global minimum corporate tax rate—and this idea is just for starters. Plans are being developed to have global tax laws for individuals as well. No matter where you live or have a business, politicians want more money from you.

Yellen says a global minimum corporate rate is needed because there is, as she puts it, a destructive race to the bottom. To hear her tell it, governments won’t be able to get any taxes at all unless drastic steps are taken. 

Our Treasury chief is spouting nonsense. Countries have been tweaking corporate tax rates for years to stimulate growth, but they are nowhere near zero. Ireland’s famously low rate is 12.5%. Hungary’s 9% is the lowest in Europe. Britain, moreover, has announced it plans to substantially boost its corporate tax rate in 2023. 

Nonetheless, Yellen and other big tax-and-spend advocates are employing scare tactics so they can more easily hike taxes to help pay for their blowout spending schemes. 

Yellen’s call has a special urgency to it: If she and President Biden have their way, the U.S. will soon have the highest corporate tax rate in the developed world. This will give a huge advantage to companies overseas that compete with ours. 

A global tax regime with a high minimum would help take the sting out of what congressional Democrats want to do here.