The Herculean intergovernmental G-7 political forum sprints toward a global system that would change the amount of tax corporations pay, and to whom. Global wealth confiscation attempts cause one-world advocates to rejoice.
President Joseph Biden, President Emmanuel Macron, Prime Ministers Justin Trudeau, Boris Johnson, Mario Draghi, and Yoshihide Suga are leaders of the G-7 team working toward a global cartel of government taxation and for a global minimum tax rate (GMTR). More than 100 countries have agreed to support a corporate global minimum tax-rate of at least 15%. The plan is expected to be finalized in October 2021 with a start date of 2023.
A Paris-based group, The Organization for Economic Cooperation and Development (OECD), would administer the tax. Global minimum tax would surrender the financial sovereignty of individual nations, to OECD bureaucrats in France.
Anti-global minimum tax-rate crusaders ask, “If the United States signs onto a global minimum tax, would it require a treaty?” A treaty signed by the United States requires ratification by 2/3rds of the Senate to be legally effective. Daniel Burn at the Tax Foundation Think Tank believes it would be a treaty. Former Treasury official Manal Corwin believes that can be done through Congressional budget reconciliation procedures.
When President Obama entered into the Iran Deal, the issue of a treaty was debated. A treaty is a formal contract that establishes obligations between nations. Treaties are binding federal legislation; they are law. A legal treaty must be ratified by the Senate, and not based solely on the word of any president. Fearing it would not be ratified, President Obama did not have the Iran Agreement sent to the Senate. Barak claimed it was not a treaty, but a deal. It was not a treaty, therefore a subsequent president could refuse to participate. President Donald Trump implemented the United States withdrawal from the deal.
Grover Norquist, President of Americans for Tax Reform warns against a global minimum tax. Cartels that keep prices high hurt consumers. Creating a tax alliance of governments to avoid tax competition is bad for citizens and for taxpayers.
Rogue nations will have a competitive edge over countries forced to follow the rules.
Would China and Russia will abide by the rules? China has agreed to the GMTR framework, but already has begun pushing for major exemptions.
Prime Minister Victor Orban of Hungary is formidable in opposition to the global minimum tax. Hungary has a 9% corporate tax. Tax-haven countries such as Cyprus, Ireland, the Netherlands, Luxembourg, Barbados, Estonia, Ireland, Kenya, Nigeria, Sri Lanka, St. Vincent, the Grenadines, and Peru have joined the opposition. These countries value national independence in tax policy. A global tax is an absurd concept that will hurt business-friendly countries.
Only Voltaire's Candide would believe that success with a global corporate tax rate would stop at a minimum for corporations. One-world globalist tax crocodiles will quest for minimum personal income taxes, minimum asset taxes, real estate taxes, wealth taxes, sales taxes, and any manner of new forms of wealth confiscation to empty the pockets of productive citizens and limit their freedoms.
An appeaser is one who feeds a crocodile, hoping it will eat him last.
Sir Winston Churchill