President Biden has a long list of complicated tax increases he wants to impose on American employers. One such tax hike is the “Global Minimum Tax” which is harmful to Americans in a number of ways:
Erosion of U.S. Sovereignty: Biden’s global minimum tax surrenders U.S. sovereignty and autonomy over its tax policies to a non-democratic Paris-based organization of bureaucrats called the OECD. By submitting to an international tax cartel, the U.S. would forfeit its ability to tailor tax laws to suit its economic needs and national priorities. This loss of control would shackle America’s hands, depriving it of the power to enact policies conducive to American prosperity.
President Trump and congressional Republicans wisely kept away from this tax cartel and will do so again if given the opportunity.
Hampered U.S. Competitiveness: The imposition of Biden’s global minimum tax cripples the competitiveness of U.S. businesses vs. our competitors and adversaries. This Biden tax will saddle American companies with an additional financial burden. This will kill American jobs.
Bureaucratic Nightmare: Biden’s global minimum tax imposes a bureaucratic nightmare on U.S. businesses. The labyrinth of compliance requirements and convoluted tax laws would impose an intolerable administrative burden, diverting resources away from productive endeavors and stifling entrepreneurial spirit.
Abolishes healthy tax competition between nations: 140 foreign countries agreed to a 15% global minimum tax proposed by the OECD. Biden not only wants to yoke America to this cartel, he wants to already raise the tax rate to 21%. Because this tax cartel will end tax competition, greedy bureaucrats will simply turn the tax dial higher and higher, sucking more and more taxpayer dollars out of the wallets of Americans.
Stifled Investment: Biden’s global minimum tax is a disaster for direct foreign investment in the U.S. as employers are driven away by the prospect of shouldering higher tax burdens regardless of where they operate. As a result, the flow of capital into the U.S. dries up, choking off the lifeblood of economic growth and innovation.
Risk of Double Taxation: A global minimum tax regime poses a dire threat of double taxation for U.S. companies. Even if a business operates in a jurisdiction with a tax rate below the global minimum, it could still find itself slapped with additional taxes when bringing profits back home to America. Biden’s blatant overreach would suffocate American employers’ international expansion opportunities.