Global Tax Code Threatens US Sovereignty and Business Stability

Global Tax Code Poses Threats to US Sovereignty

The Biden administration's push for foreign governments to impose extra taxes on U.S. corporations threatens the financial health of American workers and consumers. These proposed taxes would potentially get passed down, increasing costs and reducing disposable income.

Impact on Workers and Consumers

Many Americans are significantly concerned about rising consumer prices. If foreign governments are allowed to tax U.S. corporations more heavily, workers can expect compensation cuts and consumers will face higher prices at stores. This shift is being facilitated by the UN’s consideration of a majority voting system, which undermines existing trade agreements.

Global Shifts in Tax Policy

• The OECD's focus has moved from economic development to preventing corporate tax avoidance, leading to regulations that impact U.S. corporate profits.
• Countries are now reallocating taxing rights and advocating for a global minimum tax, which strikes directly at U.S. interests.
• China stands to benefit as the UN's decisions on tax policies could favor its economic agenda, further infringing on U.S. sovereignty.

Choosing Bilateral Treaties

Bilateral treaties present a viable alternative for the U.S., as they respect the needs of both parties involved. However, recent terminations of agreements, such as the U.S.-Hungary Tax Treaty, counteract these efforts. The emphasis should be on strengthening these treaties to uphold American sovereignty against discriminatory foreign taxes.