President Biden is pushing sweeping changes to raise taxes on big corporations and quadruple the tax on stock buybacks, benefiting wealthy investors and CEOs with low-tax payouts. He wants to raise the corporate tax rate to 28% and the minimum corporate tax rate to 21%.
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Biden’s plan aims to solve the problem of large corporations paying little to no taxes, which many Americans find unfair. The goal is to have these large corporations contribute more to the country’s finances, which can be used for public services and infrastructure. However, not everyone thinks this is a good idea.
Kevin O’Leary, an entrepreneur and TV personality, recently said that raising the corporate tax rate to 28% would make the US the least competitive country in the G7.
O’Leary explained: “Tax rates are important. You heard Trump talking about 15 to 21 percent. Add three to four for each state and you get 21 to 24, 25 for the US corporate tax. That’s kind of in the middle of the road in terms of competitiveness. Not the best, but if you go to 28 and add four percent, you’re the least competitive country in the G7.”
This isn’t the first time O’Leary has criticized rising corporate tax rates. A few years ago, he warned that such increases would stifle economic growth by making it harder for U.S. companies to compete with companies in other countries, potentially slowing the economy and reducing employment.
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The International Monetary Fund (IMF), on the other hand, has expressed concerns about the impact of artificial intelligence on inequality and is urging governments to protect their economies.
In a recent report, the IMF said it was really concerned about major changes to the labor market and greater inequality as AI becomes more common. It said countries should improve unemployment benefits and prepare for job losses, especially in higher-skilled jobs, which are different from previous technological changes.
Instead of special taxes on AI, the IMF proposed increasing taxes on capital gains, profits, and corporate income to address wealth inequality.
“We want people to benefit more broadly from the opportunities that this technology offers, and we want to ensure that opportunities are created for people,” said Era Dabla-Norris, deputy director of the IMF’s Fiscal Affairs Department and a co-author of the report for the Financial Times.
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This article Biden Enforcing 28% Corporate Tax Rate Would Make US ‘Least Competitive Country in G7,’ Says Kevin O’Leary originally appeared on Benzinga.com
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