Graham Platner Vows to “Coordinate Taxes” on Americans with Russian, Chinese Governments

Graham Platner’s tax plan calls for an unprecedented global wealth tax on unrealized gains enforced through coordination and taxpayer information sharing with foreign governments including China and Russia.

Platner, the Democrat U.S. Senate candidate from Maine, calls for the creation of an annual 6 percent wealth tax on Americans paired with an international agreement among G20 member countries to coordinate the implementation and enforcement of an annual 2 percent minimum tax on wealth.

G20 member countries that Platner would have the U.S. government share taxpayer information with include China, Russia and Saudi Arabia.

Here’s Platner’s plan in his own words, taken directly from the tax plan available on his campaign website:

“America must lead the charge for a global minimum tax to break this chain of dominance and ensure that extreme wealth is finally reinvested in the public good, regardless of where it is parked.”

A footnote attached to the above sentence specifies:

“This proposal aligns with calls for a Global Minimum Tax on Ultra-High-Net-Worth Individuals, as outlined in the blueprint by the EU Tax Observatory and G20 partners.”

Platner’s tax plan was originally commissioned by Brazil’s socialist President, Lula

The “blueprint” of the global minimum wealth tax Platner cites was conducted by French economist Gabriel Zucman and commissioned by the G20 Brazilian presidency under Brazil’s socialist president, Luiz Inácio Lula da Silva.

Platner tax plan hands taxpayers’ “real estate and other non-financial assets” to foreign governments

Platner’s wealth tax would require unprecedented government surveillance of financial information and new systems for monitoring assets around the world. Platner’s tax plan embraces this approach, arguing “global economic institutions” must “bring private financial intermediaries under public oversight” to “identity and target concentrated wealth.“

The blueprint Platner cites provides further details, making it clear that the global minimum wealth tax would expand the existing bank data exchanging agreement among more than 100 countries to cover taxpayers’ wealth, income, real estate and non-financial assets.

Here it is straight from the blueprint:

“To enforce this system, the starting point would be the existing international automatic exchange of bank information, the Common Reporting Standard. This Common Reporting Standard would need to be extended to include information on the wealth and income of former residents liable for taxes in their origin country.”

…

“Improving the effective taxation of ultra-high-net-worth individuals requires improving international information exchange. The Common Reporting Standard should be extended to include real estate and other non-financial assets.”

Platner plan surrenders America’s low-tax advantage.

Graham Platner and advocates of this proposal clearly do not understand the purpose of tax competition. Tax competition forces governments to compete for investment, businesses, and residents. When taxpayers can move capital away from high tax jurisdictions, governments face pressure to keep tax rates reasonable and spending under control.

Platner’s global wealth tax would require the United States would have to “coordinate” tax agent enforcement with countries whose interests often conflict with America’s own. The international institutions that struggle to reach consensus on other economic issues and security would suddenly be trusted with managing a global tax regime.

Platner’s wealth tax repeats Europe’s failed and abandoned policy

International experience with wealth tax is overwhelmingly negative. Many European countries experimented with such wealth taxes before abandoning them after the discovery that they generate little revenue while discouraging investment and encouraging capital flight, the relocation of assets or residencies to other jurisdictions, to avoid the tax.

The United States benefits from policies that encourage investment, entrepreneurship, and capital formation. A global minimum wealth tax would undermine these catalysts of economic growth.

The global wealth tax is not about fairness. It is a campaign against competition.

The United States should not make tax decisions together with adversary governments like China and Russia. Platner’s proposal is a blueprint to eliminate tax sovereignty.