The Treasury Department on Wednesday will roll out a corporate tax reform plan from President Barack Obama, administration officials said on Tuesday, with expectations low for any major tax code overhaul in an election year.
The Obama plan will follow such principles as “fairness” that the president laid out in his State of the Union address to Congress last month, the officials said.
A cut in the corporate tax rate, which presently tops out at 35 percent, may be included, as well as a proposal for a minimum tax on overseas profits, analysts said.
A minimum tax on overseas profits effectively means redistributing wealth from more favorable jurisdictions back to the United States. In other words: operating globally is about to get a lot more expensive. This is anti-trade and intended to punish nations that don’t structure their regulatory / tax regimes to American liking. This is because these jurisdictions have formed convenient hideouts for “American” capital.
The real problem is that corporations are destroying the concept of nations, which is the best service corporations are offering humanity, at least in concept. Nations, obviously, will not go quietly.
