I hate to say ‘I told you So’…..
So I won’t…..
Rich people and big business do NOT pay much of any taxes…..
Re -read the headline on this post….
House Democrats want the ‘pause’….
They want the Biden admin to wait and see how many OTHER countries raise a global tax rate of 15% on multinational companies…A Lot of countries have pledged to do so…Few will probably actually do this …..
A ‘pause’ could be a nice way of saying something these Democrats will have company from Republicans who cut taxes for the right and big business back in 2017….
Some of us are VERY sceptical of any meaningful tax increase coming out the Biden/Democratic legislation in the works right now….
(House Democrats have ALREADY dialled back Biden Biden tax increases for big business)
Now awe know even some other Democrats are worried about raising taxes for those who actually afford to pay them….
No increase in tax revenue will doom parts of the Biden ‘Go Big’ legislation for sure….
Otherwise, they write, Democrats’ plans to hike an existing U.S. tax on companies’ foreign earnings, known as GILTI, would put American firms at a competitive disadvantage.
“I would encourage Leadership to pause on moving forward with GILTI and international tax changes at this time,” wrote Reps. Tom O’Halleran (Ariz.), Henry Cuellar (Texas) and Lou Correa (Calif.), all members of the business-friendly New Democrat Coalition.
“We must find a new pathway to ensure that we do not move before the rest of the world on implementing a new GILTI regime,” they said. “While well-intentioned, the GILTI changes as proposed would potentially reduce American competitiveness with their foreign counterparts and result in American job losses.”
Democrats, who can only afford to lose three votes in the House, are banking on hundreds of billions of dollars in tax increases on companies’ cross-border operations to help pay for their reconciliation plan. Delaying those changes in order to accommodate the moderates’ demands would cost Democrats’ money.
House Ways and Means Committee Chair Richard Neal (D-Mass.), who was also a recipient of the moderates’ letter, had already dialed back plans to raise taxes on multinationals in response to objections from rank-and-file colleagues…..
The U.S. and more than other 130 countries have signed off on a framework to rewrite international tax rules, including creating a new 15 percent global tax rate.
Individual countries still have to write and approve legislation implementing the proposal announced last week. While policymakers hope they can happen by 2023, some experts consider that unlikely…