Global Taxes - Global Stagnation• Ron Paul Institute - Ron Paul
Treasury Secretary Janet Yellen has proposed that governments around the world require payment of at least a uniform "global minimum corporate tax." A motivation for Yellen's push for a global minimum corporate tax is fear that the Biden administration's proposed increase in the US corporate tax will cause some American corporations to flee the US for countries with lower corporate taxes.
President Biden wants to increase corporate taxes to help pay for his so-called infrastructure plan. The plan actually spends more on "progressive" priorities, including a down payment on the Green New Deal, than on infrastructure.
Much of the spending will benefit state-favored businesses. For example, the plan provides money to promote manufacturing and electric vehicles. So, the idea is to raise taxes on all corporations and then use some of the received tax payments to subsidize government-favored businesses and industries.
The only way to know the highest valued use of resources is by seeing what goods and services consumers voluntary choose to spend their money on. A system where the allocation of resources is based on the preferences of politicians and bureaucrats — who use force to get their way — will be less efficient than a system where consumers control the allocation of resources.
Thus, the greater role government plays in the economy the less prosperous the people will be — with the possible exception of the governing class and those who make their living currying favor with the rulers.