Republicans argue that President Joe Biden’s budget plan would offer major giveaways to China. That’s because the global minimum tax would hit the biggest U.S. corporations overseas with at least a 15-percent rate, while causing China’s state-owned enterprises to pay nothing.
NTD speaks to Anders Corr, the publisher of the Journal of Political Risk, for analysis. Corr says Biden’s plan would cause American companies to be outcompeted by Chinese companies. He cites the negotiations on the global minimum tax with The Organization for Economic Co-operation and Development (OECD) to say that there are loopholes for Chinese companies to pass through. That includes the provision that excludes companies from the tax if they operate in fewer than six countries. Furthermore, Corr says China’s state-owned enterprises will be completely unaffected by the tax and can therefore “run rampant globally.”
