Trump is doing many good things by executive order. Here’s another one.
Flashback June 5, 2021
Please recall this Statement from Secretary of the Treasury Janet Yellen On G7 Finance Ministers’ Commitment to Global Minimum Tax
The G7 Finance Ministers have made a significant, unprecedented commitment today that provides tremendous momentum towards achieving a robust global minimum tax at a rate of at least 15%. That global minimum tax would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the U.S. and around the world. The global minimum tax would also help the global economy thrive, by leveling the playing field for businesses and encouraging countries to compete on positive bases, such as educating and training our work forces and investing in research and development and infrastructure.
Signed and Sealed but Dead on Delivery
Yellen signed that deal without approval from Congress.
The deal was so bad not even Democrats could stomach it.
Now, it’s permanently dead. Trump ended any chance of enforcement.
The End of the Global Tax Affair
Today, I am pleased to report The End of the Global Tax Affair
Mr. Trump is taking aim at a tax scheme cooked up at the Organization for Economic Cooperation and Development (OECD). The first part of the deal, known as pillar one, imposes a surtax on the world’s largest companies and is aimed primarily at American tech and pharma firms. Pillar two creates a minimum global effective tax rate of 15%. Governments such as France or Germany could impose “top-up” taxes on U.S. companies whose tax bills at home are too low.
And here we are. Mr. Trump’s executive order instructs incoming Treasury Secretary Scott Bessent to warn the OECD that Ms. Yellen’s promises don’t stand unless Congress passes legislation. The order asks Treasury and the U.S. Trade Representative to propose ways to retaliate against governments that impose taxes that violate existing tax treaties. Parts of pillar one, if implemented, would do precisely that.
The global tax deal also gets a veiled mention in a separate executive order on trade. That order instructs officials to examine whether other governments impose “discriminatory or extraterritorial” taxes on U.S. citizens or companies—followed by a menacing mention of section 891 of the tax code. That provision allows the U.S. to double the tax bills of foreign companies or individuals whose governments single out American companies for heavier taxation. It’s the nuclear option of global tax policy.
Poof. The global minimum tax bill that Janet Yellen unconstitutionally signed just vanished.
Praise Trump for Ending DEI
In case you missed it, please see Praise Trump for Ending DEI. But Unrooting Infestation Will Take Time
Time to Cheer
Everyone should praise President Trump as a genuine Equal Opportunity advocate and Civil Rights activist.
This applies no matter what you believe the President’s goals are because discrimination for any reason is always wrong.
Trump is getting some things wrong. But unlike Biden, he is also getting some things right.
Place ending DEI and killing the global minimum tax in the “getting it right” bucket.
If Trump breaks his own signed USMCA treaty, which he has promised to do on February 1, that would be very unfortunate and wrong.
For discussion, please see Trump Renews Threat of 25 Percent Tariffs on Canada and Mexico
Nevertheless, some countries have jumped on this, even in the developing world.
Bring the jobs back onto American soil. No corporate tax. More americans go back to work and the tax is collected thru withholding.
Instead, for the last 40 years
YOU OUTSOURCED OUR JOBS AND WERE ALLOWED TO PAY NO CORP INCOME TAX
and then as only wall st whores can do you made our 401ks FUND ALL THIS.
COMPLETE MISH HUBRIS. You toss out belicos headlines and single statements (like “The deal was so bad not even Democrats could stomach it.”) WHILE OFFERING ZERO SUBSTANTIATION. ZERO.
Why is everyone agreeing to a minimum so there’s not a pariah “race to the bottom” of every country undercutting the next? YOU OFFER ZERO REFUTING ARGUMENTS.
Wreckless yourself.
They agree to it because those governments want to set a floor for what they can skim from the tax chattle. Next will be an individual income tax agreement.
The substantiation was implied that, while dems controlled congress and the presidency, they didn’t legislate this. You know, do it in accordance with the law of the land.
“Yellen signed that deal without approval from Congress.”
I agree that the concept of the OECD BEPS 2.0 Pillar 2 (the 15% global minimum tax) is not anathema to Democratic tax policy. Although actually implementing it in the US is probably impossible (given that we are too proud to outsource our tax policy rights to the OECD, and thus we’ll have significant problems with the qualified domestic minimum top up tax (even though it is similar to CAMT) and the income inclusion rule (even though it is similar to GILTI)). And of course that could lead to problems with the undertaxed profits rule.
The biggest problem, though, as Mish mentioned is Pillar 1, which is not in line with any Democratic policies and cannot be squared with either our existing tax treaties or any of our international taxation or transfer pricing rules.
Delete OECD 15% tax. Impose 15% tariff on them, on Mexico, Canada and Columbia and 60% on China. Tulsi is out !
Looks like the AI bubble is bursting. Good.
A MAGA client has raged against DEI so boy was I shocked to learn that his contracting business is owned predominantly by his wife such that they have been awarded federal and State contracts and certain tax benefits. The minority-owned business programs were embraced by his wife and she has been mentored such that she is now truly running a business and better than he ever did. He acknowledged that without governmental support, his wife would not have been able to break into a male dominated field.
So maybe white males should not be disparaging the benefits of DEI mentoring as if they know what it is like to be discriminated against for being a minority in race or gender. Stop the pathetic whining. Look no further than the make-up of the GOP – white male representation is intact and a serial, white male sex offender was elected.
So your unsubstantiated claim is that some “client” benefitted from special treatment that his wife received from state and federal government policies because of her status and since that “client” indirectly bennefitted then “white males” should not complain about such policies? The implication is that they just need to attach themselves to someone with attributes that qualify for special treatment and ride that gravy train – sounds like a fulfilling life. /s
For clarification, what is a “white male”? Do you define it strictly by the percentage of melanin in a person’s epidermis? Is it up to individuals to self-identify as “white male” and then you chastize them?
Thank you, CMA. HE, SHE or IT cannot think outside of HE, SHE, or ITS box.
What race does it say on their birth certificate? Let’s be consistent in how we administer to race and sex, mkay? Or is it such that now Trump is president, you’d like to pick how you treat each subject according to how it most benefits you, consistency in arguments and intellect be damned?
What you wrote doesn’t make sense as a response to my comment. How do you interpret eschewing preferential treatment based on physical attributes to mean preferring special treatment?
If you didn’t know, race is an artifical construct used to group individuals and it is not rigidly defined. Over the past 150 years in the U.S. ‘white’ has come to mean an expanding group of people (at one time not including those with ancestry from Ireland, Italy, the Baltics, et cetera). Now it is becoming more restrictive as fewer want to identify that way, perhaps because using “white male” as a pejorative is one of the few protected classes of insults in today’s world-
https://apnews.com/article/race-ethnicity-census-bureau-hispanics-0b2c325b683efd95e8e8e24235654abd
Jennifer, am I to assume that it would be OK for me to call you out as a FEMALE (color?) Person? Would I be justified if you were BLACK or ASIAN or LATINA and then make (likely false) assumptions about your hormonal levels and inability to think outside of the “FEMALE BOX.”
You should Meet my Wife, known as the “General” in my little family unit. She has NO qualms with my color, my up-bringing, or my normal hormonal levels. She NEVER assumes anything about me as a Man. I am a “MAN” at times and VERY “WOMANLY” at times, minus the apparatus. Some of my best personal friends are Portuguese, Female, Spanish, Mexican and even GAY.
DO NOT FOIST YOUR ANTI-MALE SHIT ON US. My wife read this and approved of this message.
You sound like you drive a jacked up dualie and roll coal. Maybe you just like projecting that macho image
I drive a Subaru. So, there! I also owned a Hybrid. My biggest Vehicle is a Marathon Prevost Bus, 45 feet and we live in it part time and part time in Southern EU.
Jen, that was done 40 years ago ok. Every construction contractor back in the 80’s put his wife on to be a minority owned contractor, this isnt something new. It was the only way to get a fed or state bid on a contract
And I am sure back in the 1980s, if you were even _ucking born you would have been saying ” you go girl”
What kind of constitutional republic is America where a mere Treasury Secretary can bypass congress by signing on to international tax agreements or climate accords?Well that must be the vaunted democracy the MSM and the Democrat party is constantly blathering about.
…as Trump signs illegal Executive Orders unwinding Congressional acts and he and Melania make billions on crypto.
May I call you, “JENNY?”
Relax. You are taking politics way too seriously. Read some poetry and listen to some relaxing Classical Music and BREATHE DEEPLY.
Don’t you have some ambulances to chase today?
The kind where things get done regularly and dramatically by ‘executive order’. In other words, not the textbook definition of a constituational republic.
See also: wars, non-declaration of
Why now?
Via The New York Times (emphasis added):
“The C.I.A. has said for years that it did not have enough information to conclude whether the Covid pandemic emerged naturally from a wet market in Wuhan, China, or from an accidental leak at a research lab there.
But the agency issued a new assessment this week, with analysts saying they now favor the lab theory.
There is no new intelligence behind the agency’s shift, officials said. Rather it is based on the same evidence that has been known for months.
Fauci, who was Biden’s chief medical advisor, justified Covid mandates because average citizens “don’t have the ability” to determine what is best for them. But Congressional investigations revealed that Fauci was at the center of string-pulling to shirk responsibility for the Wuhan debacle. After congressional suggestions to prosecute Fauci for false testimony on bankrolling “gain-of-function” research, Fauci howled that his critics are “really criticizing science because I represent science.”
“There is no new intelligence behind the agency’s shift, officials said. Rather it is based on the same evidence that has been known for
months. years.”This is the accurate way to make that statement. Not sure if that error was a NYT special or straight from ‘the agency’.
“Why now?”
Change in management at the very top. The admission is also a limited hangout. David E Martin exposed the truth at an EU forum in May 2023. The story of manipulating corona viruses goes as far back as 1965. Martin stated unequivically that COV 1&2 are not natural.
Another score for the ultra-rich!
Life is so tragic and insane for everyone who has almost no clue about the actual historic underpinnings of certain kinds of taxation. The real truth got whitewashed very long ago to be gradually and fully replaced by lies, omissions and half-truths. All governments in America had been set-off and prepaid far into the future around 1941. They had the means to run everything without scamming up all the ways to reclassify the people as FEDERAL PERSON INTERNALS like a wholly-owned franchise owned by a parent company.
“Scamming” needs to be replaced with “SKIMMING.”