President Joe Biden said on Monday that “there’s no evidence” that corporate tax hikes will hurt the economy, the same day his treasury secretary, Janet Yellen, provided evidence it would.
Speaking to the Chicago Council on Global Affairs yesterday, Yellen proposed a global minimum corporate tax rate be imposed on businesses which is a tacit admission that Biden’s proposed corporate tax hikes would put American businesses at a competitive disadvantage with other nations without it.
“Competitiveness is about more than how U.S. headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”
The Wall Street Journal reported that Yellen pushed for a globalist tax rate out of necessity for funding Biden’s $2.3 trillion so-called “infrastructure” plan, a plan that has only 6 percent of its funds going towards infrastructure, according to Fox News.
Yellen offered no ideas on how the Biden administration would compel other nations to not seek a competitive advantage with their tax structures. Biden is proposing a 33.3 percent increase in the corporate tax rate, bringing the rate from 21 percent to 28 percent.
Economist Peter Schiff tweeted, in response to Yellen’s comments, that Biden’s “administration wants to pressure the rest of the world into raising taxes so that higher U.S. tax rates won’t be as globally uncompetitive. Hopefully other nations resist. America has gone from the leader of the free world to the leader in making the world less free!”
The global minimum tax rate may also show that the government and Federal Reserve are running out of tools from their bag of tricks to keep a phony economy afloat. Every dollar of government spending is a tax that must be paid for by the taxpayers through direct taxation, dollar devaluation through inflation of the money supply or debt through borrowing.
Politicians from both major political parties, bureaucrats and Federal Reserve officials have been more than willing to abandon all forms of fiscal responsibility over the last year with out-of-control spending by both the Biden administration and former President Donald Trump’s administration.
Currency inflation has been the primary tool to fund the spending over the last year. Several reports over recent months have estimated that between 22 percent and 35 percent of all money created in American history has been printed, or digitally created, over the last year. A data tool from the Federal Reserve Bank of St. Louis has shown that the money supply, under M1 Money Stock, went from $3.9 trillion at the start of 2020 to $18.1 trillion as of March 23 of this year, the most recent data available.
Debt has also been used heavily. Rep. Thomas Massie of Kentucky tweeted that about 25 percent of debt in all of American history, since 1776, has been accrued over the last year. He added: This is NOT sustainable.”
Content syndicated from TheLibertyLoft.com with permission.