People and businesses have been leaving New York City, and the state of California, at a considerable rate. Some of these people/businesses are *resources* from the standpoint of government and its leaders: they are tax money on the hoof. Cuomo, de Blasio, and Newsome would surely like to have a way of keeping them there. Would these leaders, if they were allowed, favor a legal prohibition on exits, or at least a prohibitive tax penalty for such exit? This is the logic of the Berlin Wall, or of the Reich Flight Tax, the Reichsfluchtsteuer. Such things may seem impossible in America, but the Dems have pushed for a lot of things that would have previously been considered impossible in America.
Comes now Janet Yellen of the Biden administration, with a proposal for a global minimum tax on businesses, thereby nailing the feet of companies to the floor and keeping them from going elsewhere to avoid excessive exactions. Just as Blue-city mayors would rather not have to worry about offering a tax system that is fair and economically-rational, the same is true of the Blue Biden administration.
As a writer at Ricochet has pointed out:
(Yellen’s proposal) is a terrible idea, for a very simple reason: “harmonizing” between governments eliminates competition between them. And it locks in the kind of bloated incompetence that is a feature of even the best governments out there.
We want companies to be able to shop for their preferred home, just as we want Americans to be able to move to low-tax states. Similarly, if a poor country is trying to attract tenants (companies), why should they not be able to offer advantageous tax rates or less bureaucratic overburden?
It would not just be a matter of keeping companies from moving–the proposal would also tend to reduce or eliminate pressure to keep taxes low and minimize government waste.
Basically, this global minimum tax would represent the collusion of the political and bureaucratic classes against everybody else.
And against diversity–any diversity of political and economic philosophies.
“Progressives” don’t like fine-tuning incentives; they like issuing prohibitions and giving orders.