The Biden administration won its first major diplomatic victory, as the finance ministers of the G7 nations agreed to a global minimum corporate tax rate. Back in January, I called for just such a minimum corporate tax, but the Biden administration did me one better. They recognized that unless other nations established something similar, large multinational corporations could simply move their profits offshore. Getting the G7 on board is a huge step. Newsweek has the story.
Along the same lines, at Foreign Affairs, Joseph Stiglitz, Todd Tucker and Gabriel Zucman argue that increased taxation on the rich is absolutely necessary in order to save capitalism. The numbers are shocking, for example:
The global average corporate income tax rate fell from 49 percent in 1985 to 24 percent in 2018. Today, according to the latest available estimates, corporations around the world shift more than $650 billion in profits each year (close to 40 percent of the profits they make outside the countries where they are headquartered) to tax havens, primarily Bermuda, Ireland, Luxembourg, Singapore, and a number of Caribbean islands.
The public sector has been starved while the richest of the rich put their money where the common good can’t touch it. It is a scandal.
In The New York Times, a look at the changing politics of the American Civil Liberties Union, and it is not pretty.