Joe Biden and Congressional Democrats' plan to give the United States the highest corporate tax rates in the developed world will harm America’s economy, kill American jobs, and give China a leg up in their quest for world domination. If Biden and congressional Democrats get their way, our corporate tax rate would be substantially higher than Communist China’s rate. American workers would suffer the most as their jobs are exported abroad to lower taxes and lower cost nations.
But it isn’t just corporate income taxes that the Democrats and Biden want to raise. They also want to raise taxes on Global Intangible Low Tax Income (GILTI) to 21 percent. This has the effect of imposing a minimum tax and creates a stimulus program for workers around the globe, but not in the U.S. Biden’s plan would penalize American companies with a massively higher minimum tax and at the same time exempt foreign competitors. There is no good reason to hamstring American companies, kill off incentives for good paying jobs to remain in America, or make jobs our primary export. But that is precisely what the Biden tax plan would do.
Even the left-leaning Tax Policy Center agrees that Biden’s plan will make U.S. companies easy targets for foreign companies — including those owned or controlled by the Chinese Communist Party. They concluded that “Biden’s proposal would likely reignite corporate inversions — transactions where US multinationals become foreign multinationals, usually through acquisition by a foreign company.”
The Tax Policy Center also acknowledges that “Biden’s platform argues that a greatly strengthened foreign minimum tax is needed to prevent US firms from investing and shifting profits offshore, where taxes are lower. These practices can lower US wages and tax revenue.”
So it isn’t just right-leaning economists who see this policy as dangerous and harmful. Biden’s tax policy simply is harmful to both the US and American workers. The primary beneficiaries would be foreign competitors — China in particular. China has to be rooting for this tax plan because it will play into their hands and make their plans for hegemony more easily achieved. If you want to know what a world dominated by the Chinese Communist Party might look like, ask Hong Kong, which is being brutally repressed, or ask the Uyghurs and other ethnic minorities who are being held in concentration camps and raped and murdered because the regime doesn’t like them.
It isn’t very often that people think of tax policy as a national security issue, but in this case it clearly is. Having a strong and robust economy isn’t just good for American workers or American investors, it’s good for America’s national security. Exporting jobs and economic well-being only strengthens China’s hand.
We defeated the Soviet Union during the Cold War because our economy was relatively strong and they could not keep up. We didn’t bomb them into submission. We didn’t invade them. We simply grew economically at a rate that they could not keep up with. China hopes to do that to us. The question is, will we cooperate with their goals and place ourselves in their grasp? The answer? Only if we are stupid.
The bottom line is that the Democrats' tax plan is to make American companies pay higher taxes than their foreign competitors. To make matters worse, Biden wants every country to impose a minimum tax on foreign earnings of domestic companies. Why would they do this? Because Biden is promising to keep the US minimum tax higher than other nations. What does that mean? President Biden is promising that he will make American companies and workers uncompetitive in the world marketplace. He is promising to make our tax code advantageous to communist China.
These are important questions: Why do Democrats in Washington, DC, led by Joe Biden and Kamala Harris, think it is a good idea to push the US corporate tax rate higher than communist China’s tax rate? Who will benefit from this policy? Are Americans ready to return to an era where American firms are regularly downsizing and moving operations abroad? Or selling their operations to foreign companies or governments?
America must maintain its strength — both militarily and economically — if it hopes to be the victor in the 21st Century. If America thinks it would be better if China takes its place, then by all means, back the Biden-Harris tax plan. But if you think the world looks more free and prosperous with America as the leading superpower, opposing the Biden plan is a good start.