President Biden is pushing for significant changes to make big corporations pay more taxes and quadruple the tax on stock buybacks, which benefit wealthy investors and CEOs with low-tax payouts. He wants to raise the corporate tax rate to 28% and the corporate minimum tax to 21%.
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Biden’s plan aims to fix the problem of big companies 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, a business owner and TV personality, recently said raising the corporate tax rate to 28% would make the U.S. the least competitive country in the G7.
O’Leary explained, “Tax rates matter. You heard Trump talk about 15 to 21 percent. Add three to four for each state, and you get into the range of 21 to 24, 25 for U.S. corporate tax. That’s sort of in the middle of the road regarding the competition. Not the best, but if you go to 28 and add four percent, you are the most uncompetitive country in the G7.”
This isn’t the first time O’Leary has criticized increasing corporate tax rates. A few years ago, he warned that such hikes would stifle economic growth by making it harder for U.S. companies to compete with businesses in other countries, which could slow down the economy and reduce job creation.
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On the other hand, the International Monetary Fund (IMF) has raised concerns about the impact of artificial intelligence on inequality, urging governments to protect their economies.
In a recent report, the IMF said it is really worried about big changes in the job market and more inequality as AI becomes more common. It thinks countries should improve unemployment benefits and prepare for job losses, especially in higher-skilled jobs, which is different from past technological changes.
Instead of imposing special taxes on AI, the IMF suggested raising taxes on capital gains, profits, and corporate income to address wealth inequality.
“We want people to be able to benefit more broadly from the potential that this technology holds, and we want to ensure that there are opportunities created for people,” said Era Dabla-Norris, Deputy Director at the IMF’s Fiscal Affairs Department and co-author of the report, for the Financial Times.
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This article Biden Enforcing A 28% Corporate Tax Rate Would Make The U.S. ‘The Most Uncompetitive Country In The G7’ Says Kevin O’Leary originally appeared on Benzinga.com
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