President Biden has been working with more than 100 countries to pass a 15% global minimum tax. The change is to make sure that corporations are paying their fair share. However, Republicans are now warning that the change could undermine American workers and companies while also harming the economy. “This is a dangerous economic surrender that sends U.S. jobs overseas, undermines our economy, and strips away our U.S. tax base,” Texas Republican Rep. Kevin Brady said in a statement.
Fox Business/Brittany De Lea
Biden’s global minimum tax may hurt American workers, U.S. economy, Republicans warn
President Biden is working with a coalition of more than 100 countries to pass a 15% global minimum tax in an effort to ensure corporations pay their fair share, but Republicans warn the effort may undermine American workers and companies.
A global minimum tax, which applies only to a country’s overseas profits, seeks to prevent the world’s largest companies from dodging tax obligations by offshoring.
If a company is paying a tax rate lower than the global minimum in a foreign country, it would owe the difference in the country where it is headquartered. The policy would also potentially affect some major companies by requiring that they pay taxes in the countries where their goods and services are sold, and not just where they are physically present.
Texas Republican Rep. Kevin Brady, a ranking member of the House Ways and Means Committee, said the global minimum tax offers foreign countries a “sweetheart deal” because it will have foreign countries maintain a lower tax rate for their own companies earning profits in foreign markets than American companies.
“This is a dangerous economic surrender that sends U.S. jobs overseas, undermines our economy, and strips away our U.S. tax base,” Brady said in a statement.
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Market Insider/Shalini Nagarajan
US stocks could tumble 15% in a rough fall – and the bitcoin bubble could deflate further this year, Guggenheim’s Scott Minerd says
US equities could drop 15% by the end of October, driven lower by concern over the delta variant of COVID-19 and its impact on global growth, while cryptocurrencies could continue to face pressure, according to Guggenheim’s Scott Minerd.
The chief investment officer told Bloomberg on Wednesday that September and October are likely to be “very rough” months for stocks.
“Maybe a pullback of 15% or slightly more,” he said, adding that investors could get back into buying by the end of autumn.
Stock prices and bond yields recently fell sharply as growth fears sparked by the fast-spreading delta variant dented some of the market optimism. The Dow Jones slumped 2.1% at the start of the week in its biggest one-day drop since October, but stocks have slowly been clawing back gains.
That said, the benchmark US stock indices have all hit record highs this month and are not trading far below those levels. The S&P 500 hit a record 4,393.68 on July 14 and closed about 1% below that level on Tuesday.
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Fed could be forced to taper by end of 2021: Portfolio manager
Satori Fund founder and portfolio manager Dan Niles argues markets will be triggered to correct themselves by the end of this year.
You can watch the full interview, here.