December 5, 2022

Biden Scores a Win on Corporate Minimum Tax

Former Vice President Joe Biden scored a major victory at the G20 Summit in Osaka, Japan. Leaders formally endorsed his proposal for a global minimum corporate tax to help shore up revenue and alleviate inequality. The international agreement will be introduced as legislation in 2020 and would require countries to pay taxes on income they earn from their domestic-based operations, but not abroad. Biden hailed the agreement as a win for all, You should know by now I’m not one to give up easily. This idea wasn’t even my proposal, but it will help save our planet.

The first-ever global minimum corporate tax may have seemed out of reach just six months ago before Biden announced his candidacy for President. But his dynamic, populist message resonated with voters worldwide, securing the votes of Senator Bernie Sanders and President Donald Trump. With an appeal to working class voters in both major US political parties, Biden’s centrist candidacy now has international support as well.

The global minimum tax is just one part of his ambitious plan to address climate change. It would also establish a carbon tax to discourage companies from polluting the environment. Biden plans to ask Congress for $5 trillion to finance his climate plan, so the global minimum corporate tax would certainly help foot the bill.

It’s time to put Americans first, says University of California finance professor Robert Miller. No longer should US multinationals be able to avoid paying into the system that provides US citizens with so much. This is a major step for global tax reform.

Biden’s proposal is far from perfect, though. The US has no minimum corporate tax and that would continue to be the case for foreign income earned domestically and abroad. It would also put small businesses at a major disadvantage as they could not deduct any business expenses so their effective minimum rate would approach 40%.

However, it’s still a win for Biden, who has been polling ahead of Trump in key battleground states. In a crowded Democratic field, Biden’s centrist approach may be just what voters are looking for to defeat the incumbent president.

New York Times chief Washington correspondent Peter Baker says he doesn’t think Biden will win his party’s nomination, though. He is just too much like Barack Obama. He’s not young or charismatic enough to be the new face of the party, which is what it needs right now.

Even if Biden does secure his party’s nomination, he will have a difficult time unseating Trump in 2020. The President has built up an impressive war chest for his reelection campaign and has already started getting more aggressive against his opponents. He has also started to go after Biden for his decades-long record of supporting the Iraq War, which polls show most Americans believe was a mistake.

Biden still has room to grow his support base among the different Democratic voting blocs, though, so he isn’t out of the race yet. If he continues to run a centrist-focused campaign, Democrats lack an obvious progressive candidate who can challenge him.

But I was first! says Senator Elizabeth Warren of Massachusetts. We need to choose someone who has been standing up for working class Americans from day one. The only person who has done that is me!

Senator Warren has not announced her candidacy yet but insiders say she is seriously considering it after a strong showing at recent fundraisers and events. With that said, Biden still has many supporters in the party’s top donor circles.

But we need a woman as President! says former Secretary of State Hillary Clinton from her new home in Wisconsin, where she is writing her memoirs. I tried to break the glass ceiling once, but now it’s time for someone younger who wasn’t part of corrupt system that got us into this mess.