CHANGES IN OFFSHORE TAXES FOR CORPORATIONS
April 27, 2021 - Douglas Myser
Changes in offshore taxes for corporations. The political debate in the United States has shifted between the Democrats and Republicans lately. Under President Trump, running large deficits were frowned upon, but lately we are hearing how the Biden stimulus proposal is going to increase the deficit and bring on inflation. What is missing in this rhetoric is the reality of the street, and what most Americans have been going thru, the future they face, and how we can best get this country moving forward again. Most all economist agree that when economic crisis happen, often times, the only way out is for the government to spend large amounts of money to stimulate the economy and help Americans get on their feet so they don't need Tax Resolution for past tax debt, hoping the economy starts moving forward again. This formula has been used multiple times in our nation's history, in fact quite successfully. So when Joe Biden and Janet Yellen recently started discussing taxing global corporations that were skirting paying taxes, by parking corporate holdings overseas, many were not surprised, given the political climate and the need for additional revenue. Changes in offshore taxes for corporations.
Treasury Secretary Yellen is arguing for a global minimum tax for corporations as she is working to keep multinational corporations from shopping for the lowest international rate. The Biden White House wants to raise corporate tax rates, but needs the rest of the world onboard. Treasury Secretary Yellen has been clear that the Biden administration needs to raise new tax revenue. It's a key part of the administration's ambitious agenda, which includes $1.9 trillion in stimulus and a potentially $4 trillion infrastructure proposal. In coming up with revenue, part of the game plan has been to increase corporate taxes, and that's means closing loopholes that large multi nationals use to get out of paying their fair share. They have been going to countries that give them low rates, ultimately abandoning the country that gave them birth, the United States, as corporate greed takes over, versus being a good steward and doing what's right for the people who work and live here in America.