US President Joe Biden’s political agenda for funding the Infrastructure Program has led to a tax increase for the rich and corporate (from 21% to 28%) and seeks to establish a minimum corporate tax rate worldwide, but in the wrong way. (for more information read the analysis titled «Establishing A Global Minimum Corporate Tax Rate in the Wrong Way»).
by Thanos S. Chonthrogiannis
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The rationale for this decision is that in OECD countries, losses for public corporate tax evasion jumped from $150 billion a year in 1990 to $280 billion in 2000 and $500 billion in 2020.
Author Rana Dasgupta writes that the history of the nation-state consists of a constant fiscal innovation and the next such innovation must be transnational today.
To achieve this, existing capital flow control and transfer systems need to be strengthened so that some of this money can be transferred to public coffers. Without such aid, political infrastructure, liberal democracy will become increasingly redundant in real life.
The aim of these controls and monitoring mechanisms should be to lead to a global redistribution of wealth, aiming at enhancing social cohesion at international level.
In 2016, nine people owned wealth as much as 3.6 billion people, making it the poorest part of the world.
The US President understands that US-China rivalry is leading to a deregulation of globalization, which he says necessitates a global social contract. Otherwise, the world will be led to dangerous crises.
Gradually all the states of the West and the developing world in general will accept the need for such regulations.
