U.S. Treasury Secretary Janet Yellen has proposed a global minimum income tax rate for large companies.
“We are working with the G20 to agree on a global minimum income tax rate that can stop the race to the bottom. Together we can use the global minimum tax to ensure that the global economy thrives, based on multilevel game area taxation of multinational corporations and encourages innovation. growth and prosperity, ”Yellen said at a meeting with the Chicago Global Affairs Council.
Rick Rule, CEO of Sprott Inc., called the proposal “contemptuous” and said it was a greater effort by the government to flex raw power than to actually create prosperity.
“I think it’s contemptuous, I think it’s dangerous, I think it limits investment, I think it encourages abuse by governments, I think it’s worse than bad and I think it’s going to happen,” said Rule, who recently stepped down. president of Sprott US Holdings, a global alternative asset manager, with a focus on precious metals and real estate.
“This is not about justice, let’s clarify this, this is about envy. To the extent that governments have the ability to expand their ability to coerce across borders, they will do so. This is simply about less freedom and more centralized control. thinkers, the IMF, elected politicians don’t deal with utilities. They don’t have to convince their customers, they deal with raw power, “said Rule Michelle Makori, editor-in-chief of Kitco News.
Rule noted that although Yellen has called for international cooperation and the concept has already received IMF approval, the US is not really needed for this to be implemented.
“The United States government is so powerful, and the U.S. economy so powerful, that the United States could act almost unilaterally toward U.S. taxpayers, no matter what other G20 countries do,” he said. “It’s ironic that the only hope for free people when it comes to this could be a place like Russia or China.”
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