The G-7, meeting yesterday unanimously decided that you don’t pay enough in taxes. Regardless what Joe Biden promised when he was running for president, even if you and your family make less than $400,000 a year, you’re going to be seeing a tax increase soon. It will be at least a 15% bump.
The G-7, comprised of the United States, Canada, France, Germany, Italy, Japan, and the UK have decided that in order to make sure that multi-national companies all “pay their fair share”, they need to pay a global tax. So, every single company that does business outside of the United States in any way, shape, or form, will have to pay a 15% tax, and it could be as high as 20% on any company that makes a profit of 10% or more.
So how do YOU get taxed on this?
Have you ever known a company not to pass on their costs to consumers? Of course they will! And this is no difference. Companies the world over, that do business everywhere, think major corporations have just had a 15% hit to their bottom line. And the person that’s responsible for this? United States Treasury Secretary, Janet Yellen.
Yellen has been pushing this idea inside the White House since she got the job. It’s her way to “insure that the middle class isn’t hit with tax increases” while the government gets much needed money so they can pay for Biden’s outrageous $6 trillion budget. It takes wealth redistribution to a whole other level.
When you think about it, companies for years have been able to dodge paying taxes in the United States, not because of any fault of their own. They are following the tax code. And the tax code is full of loopholes. They get credits here in this country for foreign taxes paid. And they get credits for a ton of other things that brings their US liability down to zero. The left loves to parade those that pay no taxes as “not paying their fair share”, yet it’s Congress that writes the tax laws, and Congress that makes the rules. If they aren’t paying their fair share, and they aren’t breaking the law, then who really is to blame? It’s the people you and I send to Washington, DC.
The whole thing is a push to raise taxes on certain industries. Big Tech is most likely to be targeted by European countries that are upset that companies like Microsoft, Alphabet Google, Twitter, Facebook, and Amazon continue to rack up huge profits without paying any taxes in their countries, and they want to share in the wealth. Likewise, the Biden administration is looking at raising the corporate tax rates from 21% to 28% here in this country.
What does that mean for our economy? Traditionally, when you raise taxes it slows incentive. It will most likely mean that less will be spent on R&D, and less will be spent in bringing new products to the market, especially if when the costs are passed on to consumers, the consumers back off and don’t purchase as much. And, just saying here, it could very well bring an end to the “free” stuff that you and I have enjoyed on the internet since it’s inception. If Big Tech can’t make what they want to make through ad sales, and selling your personal information to anyone willing to fork over enough money, sooner or later places like Facebook and Google will become subscription based (Amazon already is if you have Amazon Prime!). It’s just going to be more and more expensive for Americans, middle class Americans to enjoy what they are doing for free now.
And you have Janet Yellen to thank for it!
Carry on world…you’re dismissed!