08 Jun A PROPOSED GLOBAL MINUMUM TAX AND HIGHER INTEREST A “PLUS” FOR THE ECONOMY AS PER THE ADMINISTRATION
Will a 15% global minimum tax be instituted? The Biden Administration initially proposed a 21% levy but dropped it to 15% to ensure G-7 endorsement. According to Bloomberg, the tax will target the 100 largest and most profitable companies in the world.
Fifty-six are in the US and 14 are in China. Bloomberg reports the top 26 companies paid less than 15% and 29 of the top 60 companies are the mega technology firms.
For example, Bloomberg reports Alphabet has a 13.3% tax rate, Netflix and Microsoft paid 9.5% and 10.2%, respectively while Amazon had a 11.8% tax rate. Apple’s tax rate was 12.4%.
I must write these companies did not break any tax code.
The newswires reported the technology behemoths are “happy” with the proposal as such will end the fragmentation at hand.
What are the odds that such a proposal be passed globally much less at home?
The debt load of many governments has swelled and all governments are searching for any payment and debt service options.
My initial thought is this not one step closer to a “one world order?” Is this also colonialism on steroids?
Markets were also spoked by Treasury Secretary Yellen’s remarks higher interest rates would be a “plus” for the economy. She stated “The President should push forward with his spending plans even if they spark inflation that persists into the next year.”
Wow! I think this is the first time I have ever read a pivotal Administration official state higher interest rates would be good for the country. We are living in tectonic times.
What will happen today? The JOLTS Job Opening data is released today. Will it again indicate there is a record number of vacancies?
Last night the foreign markets were mixed. London was up 0.36%, Paris up 0.21% and Frankfurt down 0.02%. China was down 0.54%, Japan down 0.19% and Hang Seng down 0.02%.
The Dow should open nominally lower on inflation fears and tax uncertainty. The 10-year is up 7/32 to yield 1.55%.