When all you have is a hammer, everything does indeed look like a nail. This is the best way to describe government officials’ unoriginal and often destructive thinking. No matter the problem du jour, the answer is always more government spending. But more spending requires more tax revenue, which is not always easy to acquire in the modern global economy.
That’s how we got the current effort by some United States officials to impose a global minimum tax. They are hammering away to extract more revenue from U.S.-based multinational corporations by limiting competition from countries with more welcoming tax systems.
In 2017, former President Donald Trump’s administration improved the corporate tax system by lowering the top corporate income tax rate from 35 percent to 21 percent. At the same time, the worldwide tax system, under which income is taxed by a firm’s home country no matter where it is earned,
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