That Global Minimum Tax

Biden’s Sec Treasury recently proposed a policy that I can get on-board with (there are some few that I can support)…….

Now it appears that more and more countries are signing on to this policy…..
Some 130 countries have backed a global minimum tax as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates. The agreement announced Thursday by the Organization for Economic Cooperation and Development also provides for taxing the largest global companies in countries where they earn profits through online businesses but may have no physical presence. The agreement followed a proposal from President Biden for at least a 15% rate, an initiative that propelled the talks toward meeting a deadline for a deal by the middle of this year. The deal now will be discussed by the Group of 20 countries at meetings later this year, the AP reports, in hopes of finishing the details in October and implementing the agreement in 2023.
 
Under the deal, countries could tax their companies’ foreign earnings if they go untaxed through subsidiaries in other countries. That would remove the incentive to use accounting and legal schemes to shift profits to low-rate countries, since the profits would be taxed at home anyway. Not all of the 139 countries that joined the talks signed on to the deal. The proposal to tax countries where they have sales but no physical presence, which would require countries to sign up for a multilateral convention, excluded extractive companies such as oil and mining and regulated banks. The deal now faces more technical work and review by the Group of 20 countries. In the US, Biden has proposed a 21% minimum rate on overseas earnings of big US companies to deter them from shifting profits to tax havens. Biden’s US tax would need to be approved by Congress.
Like I said….I believe this is a much needed tax policy….
 
We will see just how effective it truly is or is this just a tactic to quell some larger issues.
 
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“lego ergo scribo”
 

Global Minimum Corporate Tax?

Here is an idea that I can support…..but an idea that will be fought tooth and nail by corporations that do not want to pay anything for the right of economic exploitation….

But Biden’s SecTreasury has proposed a plan for a global tax…….

Corporations around the world should pay at least a 15% tax on their earnings, the Treasury Department said Thursday as part of its push for a global minimum for businesses.

The final rate could go even higher than that, according to a Treasury release that said the 15% minimum is a “floor and that discussions should continue to be ambitious and push that rate higher.”

U.S-based companies currently pay a 21% rate, a level that was slashed during the Trump administration. Previously, the top rate had been 35%.

Under a proposal from President Joe Biden, the tax rate would be lifted to 28%, part of a plan to raise levies on both companies and the highest earners.

Treasury Secretary Janet Yellen has been touting the benefits of a global corporate minimum tax rate that she said would discourage companies from relocating domiciles to other countries to cut their tax burdens even though most of their operations are in the U.S.

Yellen’s Treasury believes “that the international tax architecture must be stabilized, that the global playing field must be fair, and that we must create an environment in which countries work together to maintain our tax bases and ensure the global tax system is equitable and equipped to meet the needs of for the 21st century global economy,” the department said in a news release.

https://www.cnbc.com/2021/05/20/us-proposes-global-minimum-corporate-tax-rate-of-15percent-with-an-eye-on-something-even-higher.html

Sadly I do not see this as a plan that will make it….corporations own a lot of politicians around the world and they will do as they are told…..

I may have been pre-mature in my doubt….

The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax of at least 15% in order to deter multinational companies from avoiding taxes by stashing profits in low-rate countries, per the AP. G7 finance ministers meeting in London also endorsed proposals to make the world’s biggest companies—including US-based tech giants—pay taxes in countries where they have lots of sales but no physical headquarters. Britain’s Treasury chief Rishi Sunak, the meeting’s host, said the deal would “reform the global tax system to make it fit for the global digital age and crucially to make sure that it’s fair, so that the right companies pay the right tax in the right places.”

US Treasury Secretary Janet Yellen, who attended the London meetings, said the agreement “provides tremendous momentum” toward reaching a global deal that “would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the US and around the world.” France cheered Saturday’s agreement and claimed credit for acting as its catalyst. “We made it! After 4 years of battle, a historic accord was reached with G7 member states,” French Finance Minister Bruno Le Maire tweeted. “France can be proud!” The endorsement from the G7 could help build momentum for a deal in wider talks among more than 140 countries being held in Paris as well as a Group of 20 finance ministers meeting in Venice in July.

Will this be just another great idea that will be thrown on the trash pile of good ideas.

A side thought for my reader to ponder…

As long as I am writing about globally….how would you like to work for McDonalds…..in Denmark…..

The agreement with McDonalds does not only include salary per. hour and 6 weeks holiday. There is extra charge for evening and night work. Payment for seniority, holiday payment (Easter and Christmas for example, (100%), on top of all payment there is an extra 6.85%, Pension plan for employees from the age of 20 (12%).

In the Danish labor market, all employees have 5 weeks paid holiday by law. Some of the things that are extra in the companies that have a collective agreement, just like McDonalds, is one week more (called Feriefridage). So, the answer to your question is yes. McDonalds employees have 6 weeks’ paid vacation for all.

McDonald’s workers in Denmark truly make more than $20 an hour.

Do McDonald’s Workers in Denmark Make $22 an Hour?

Interesting!

I Read, I Write, You Know

“lego ergo scribo”

Secretary Of Treasury To Be

My continuing look at the possible people that are being considered for the cabinet and admin of president-elect Biden…..this time I look at the proposal of ex-Fed chief Yellen as the next SecTreasury….

The first woman to lead the Federal Reserve is set to become the first female Treasury secretary. Sources tell the Wall Street Journal and the AP that President-elect Joe Biden has tapped 74-year-old labor economist Janet Yellen, who chaired the Fed from 2014 to 2018, for the role. Yellen also served as chair of the White House Council of Economic Advisers during Bill Clinton’s second term. If she is confirmed by the Senate, Yellen will lead the Biden administration’s efforts to help the economy recover from the pandemic, though unlike in her role in the Fed, she will have to deal with a deeply divided Congress on measures including another stimulus bill, the New York Times notes.

Yellen has long focused on reducing unemployment and fighting income inequality, though she has also warned that federal spending should be reduced to a more sustainable level. In a September interview with the Journal, she said Congress needs to spend more to fight unemployment and save small businesses. “There is a huge amount of suffering out there. The economy needs the spending,” Yellen said. Politico reports that before news of the Yellen pick emerged, Biden said Democrats would be pleased with the choice. “You’ll find it is someone who I think is—will be accepted by all elements of the Democratic Party, from the progressive to the moderate coalitions,” he said.

Once again Biden is turning to those people that will continue the slide of the Middle Class….so his promises in campaign were total BS as I said it was…..

She has had 30 years of fighting unemployment and wage inequality….so far it has been for naught…..

Just another Centrist” without anything new to bring to the table….typical Biden .

The only thing to change will be the gender of the secretary of the Treasury if she is confirmed by the Senate.

So far I am batting a 1000…I said after he was declared to be the winner of 2020 that little will change…..and so far I am right on target.

I Read, I Write, You Know

“lego ergo scribo”

Arrogance Runs Deep

I have seen a lot of arrogant twaddle coming from the Trump admin……these toads think they work for Trump and not the people of the US…..

In other words too many that are employed in DC these days thinks their shit don’t stink……like the troll Mnuchin our SecTreas…remember him? He and his arm candy wife were clowning in the Treasury with newly printed money…….

……….anyway he and the House have had a head butting contest……

Treasury Secretary Steven Mnuchin and House Financial Services Chair Maxine Waters probably won’t be exchanging holiday cards this year after things got a little tense during the Treasury secretary’s testimony on Tuesday. Mnuchin had testified about his plans to respond to requests for President Trump’s tax returns for roughly three hours by 5pm when he reminded committee members that he had a meeting with “a foreign leader,” meaning Bahrain’s interior minister. “It will be embarrassing if I keep this person waiting,” he said, per CNN. “It’s a new day and it’s a new chair,” said Waters. Mnuchin went on to claim a person in his position never testified so long or was treated in such a way by Republicans, as Waters tried to arrange testimony at a later date. “If you wish to leave, you may,” she said with a stern look, refusing to dismiss the hearing.

“If you’d wish to keep me here so that I don’t have my important meeting and continue to grill me, then we can do that,” but “I will not be back here,” Mnuchin said, growing heated. “The secretary has agreed to stay to hear all of the rest of the members,” Waters responded, per the Hill. “Please cancel your meeting and respect our time.” Mnuchin then said she was “instructing” him to stay, while Waters said she was accepting his offer. Mnuchin denied any offer and told Waters to “take the (gavel) and bang it” for a proper dismissal. He left soon after she advised him “not [to] instruct me as to how I am to conduct this committee.” Waters later told CNN that nothing is more important than Congress “trying to find out what exactly this secretary is doing.” Mnuchin only said he would “comply with the law” in regard to Trump’s tax returns, per Time.

His pressing appointment was with some minor minister from Bahrain….WTF is Bahrain?  An island in the Persian Gulf….who has lots of oil dollars and someone that Trump will bow down to on any given day.

Time these self centered jerks get taken down a peg or two……time for them to realize they work for the country and the people and not some country club wannabe.

But wait there is more!

This is from a Congressional Hearing…….

The transcript of the literally unbelievable exchange follows:

Massie: Sec. Kerry, I want to read part of your statement back to you: “Instead of convening a kangaroo court, the president might want to talk with the educated adults he once trusted his top national security positions.” It sounds like you’re questioning the credentials of the president’s advisers, currently. But I think we should question your credentials today. Isn’t it true you have a science degree from Yale?
Kerry: Bachelor of arts degree.
Massie: Is it a political science degree?
Kerry: Yes, political science.
Massie: So how do you get a bachelor of arts, in a science?
Kerry: Well it’s a liberal arts education and degree. It’s a bachelor…
Massie: OK. So it’s not really science. So I think it’s somewhat appropriate that someone with a pseudo-science degree is here pushing pseudo-science in front of our committee today.
Kerry: Are you serious?! I mean this is really a serious happening here?
Massie: You know what? It is serious. You’re calling the president’s Cabinet a “kangaroo court.” Is that serious?
Kerry: I’m not calling his Cabinet a kangaroo court, I’m calling this committee that he’s putting together a kangaroo committee.
Massie: Are you saying it doesn’t have educated adults now?
Kerry: I don’t know who it has yet because it’s secret.
Massie: Well you said it in your testimony.
Kerry: Why would he have to have a secret analysis of climate change?
Massie: Let’s get back to the science of it.
Kerry: But it’s not science, you’re not quoting science!
Massie: Well, You’re the science expert. You have the political science degree.

What can I say?  Massie is in good company….cowards and traitors like Jordan, Gaetz, Nunes and Meadows….time for them to go the way of the dodo……these “people” are a national embarrassment and they do not realize how pathetic their politics appears……at least 33% will think they are god-like……

There should be a sign in DC for those that want to represent the people……”NO STUPID PEOPLE NEED APPLY!”

That would eliminate a bunch of babbling buffoons from local aall the way to the White House.

Will He Stay Or Will He Go?

The continuing saga of Uncle Timmy Geithner….

I recently wrote about the emails that were sent by Geithner to AIG telling them to hide pertinent ionfo about the derivatives that they were involved in….

A financial scandal has erupted that implicates Treasury Secretary Timothy Geithner in efforts to conceal the funneling of $62 billion in taxpayer funds to 16 large banks as part of the government bailout of the insurance giant American International Group (AIG).

The emails also show that the New York Fed, during Geithner’s tenure as president, pressed AIG to conceal some $10 billion in so-called “synthetic” CDOs it owned or insured. Synthetic CDOs are bundles of derivatives rather than bundles of loans—i.e., securities one dimension further removed from any real value—and are now considered among the most toxic of speculative assets.

Releasing the emails last week, Issa said: “Inadvertent reporting errors are one thing. Directing a bailed-out company to withhold crucial information from a government agency in order to keep the American public in the dark is another. Whether or not the United States treasury secretary was directly implicated in the scheme is a key question. Either he didn’t know and he was negligent or he did know and presided over a blatant attempt to withhold information from the American people.”

So I ask, should he go or should he stay?  IMO, he should resign and let someone else work the scams…why?

It is simple, at least for me……Geithner was head of the NY Fed attempted to scam the taxpayer….when ask about Wall St regulations, he said that he was not a regulator, but the truth is the NY Fed is a regulatory agency….strike 2….while he was head of the NY Fed some banks were overpaid with the original TARP funds….strike three…..Geithner has had too many meetings with certain banks…making him too cozy with Wall Street….strike 4……that is way too many strikes against him….time to do the right thing and get the hell out of Washington….

Watching Geithner twist in the wind will be interesting…will he live to scam another day?

The Secret Life Of Uncle Timmy

What seems like a decade or more during the nomination process of the Obama cabinet…….I had a post about little Timmy Geithner and why I thought he was a bad choice for Obama…..I was not alone…there were many of us on the so-called Left that did not think this was a good choice…..we felt that he was part of the problem, not a cure…..in February of 2009 I posted:

Under the plan, which Treasury Secretary Timothy Geithner is expected to announce within the next two weeks, the government will buy up virtually worthless mortgage-backed securities and other “toxic” assets held by the banks and provide guarantees against future losses for much of their remaining assets. It will also continue to inject cash directly into the banks.

https://lobotero.wordpress.com/2009/02/05/will-it-be-more-of-the-same-for-banks/

We have been watching and waitingf for that other damn shoe to fall…..and BAM! it has finally hit……Bloomberg is reporting:

The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

“Secretary Geithner played no role in these decisions,” Meg Reilly, a Treasury spokeswoman, said in an e-mail. “He was recused from working on issues involving specific companies, including AIG,” after his nomination for Treasury secretary on Nov. 24, 2008. Geithner “began to insulate himself weeks earlier in anticipation of his nomination,” she said in a separate statement.

The e-mail exchanges between AIG and the New York Fed over the insurer’s disclosure of the transactions show that the regulator pressed the company to keep details out of the public eye.

Once again…there were many who said that Geithner’s nomination was just a move to reassure Wall Street that the status quo would be upheld….and so far we were right.  But what would this all mean?  And if Geithner is forced to resign who could they possibly find to take his place?

This was written in Roll Call:

For instance, several Democratic Senate aides noted that Treasury Secretary Timothy Geithner is an extremely unpopular figure in the Senate. Geithner has also taken the brunt of the criticism for the administration’s handling of the economy and, these sources speculated, if the country’s financial picture does not brighten before Election Day, he could be the first secretary to leave the administration.

Probably a smart idea……But would that be a good move?  First of all, a good move for whom?  For the good of Wall Street?  I think it would……Dodd is a friend to banks, even though he has offered up a regulation bill that is being considered……if he was to be confirmed then that whole package in the Senate would be swept under the rug or watered down just as health reform was last year…..

In my yearly predictions, I have said that there would be an Obama cabinet member resignation….could Uncle Timmy be the one?

Should He Stay Or Should He Go?

That is the question that is being batted around Washington these days…the “HE”  is Geithner the Obama Secretary of the Treasury….in recent hearings on Capital Hill…..the following is being reported in The Hill:

Treasury Secretary Timothy Geithner is coming under new pressure from conservative Republicans and liberal Democrats to resign.

Reps. Peter DeFazio (D-Ore.) and Kevin Brady (R-Texas) this week joined a small group of lawmakers publicly calling for Geithner to step down. Former Republican Rep. Rob Simmons, who is challenging Sen. Chris Dodd (D) for Senate in Connecticut, has made Geithner’s resignation a campaign issue.

This week’s criticism was sparked by a report from Neil Barofsky, the special inspector general over the $700 billion bailout program. Barofsky concluded that officials at the Federal Reserve, including Geithner, who was head of the New York Fed, made a series of missteps in the bailout of American International Group (AIG).

Barofsky faulted Fed officials, including Geithner, for a negotiating strategy regarding the firm’s complex derivatives that “offered little opportunity for success.” The report said that the Fed paid full value to settle the derivatives contracts, which meant tens of billions of dollars went to the big American and foreign banks that were AIG’s counterparties in the deals.

Maybe these little jerks should read my blog, among others, we brought up all this concern back in March…..we said then that he, Geithner,  should not have been confirmed let alone ever had been nominated…..after he was confirmed we pointed out that he would not be the “savior” he has been portrayed as……we bloggers were truly the visionaries, at least when it comes to Geithner and the economy….but we do not get any of the credit….nope….it will be the “politicians” that saw this coming and that will be a lie…..not misinformation….an out right LIE!

Repubs did not like him….only because he was nominated by Obama…if it had been the nomination by a Repub prez then he would have been eagerly accepted…..bloggers were about the only ones that wrote against his nomination and later confirmation of little Timmy Geithner as Secretary of the Treasury……

Since few recognize the contribution and the foresight of bloggers…I feel it necessary to give them an “atta boy”……..it would be nice if people, especially politicians, would read and appreciate the insight us bloggers have at times…..are we always correct….hell no!….but we do have our moments…..and the Geithner situation is one of our finest….

Wall Street Wins Yet Again

Patrick Martin recently wrote a very good article and it brings forth some questions that beg to be answered.

The Obama administration announced Wednesday that it opposed any government-imposed limits on the salary and bonuses of the CEOs and other top officials of major banks that have received trillions of dollars in federal handouts and guarantees over the past eight months.

Coming only nine days after the White House forced bankruptcy on General Motors and major cuts in auto workers’ pay and benefits, the green light for CEOs to continue to award themselves eight-digit compensation packages is further evidence of the grotesque double standard of American capitalism. Workers, retirees, young people and small businessmen will all see their living standards and future prospects devastated, but nothing can be allowed to interfere with the pursuit of personal wealth by the financial aristocracy.

Neither Geithner nor any other Obama administration official has explained why it is wrong and “counterproductive” to limit the multi-million-dollar salary and bonus packages awarded to bank executives, but absolutely necessary to slash the wages, pensions and health benefits of workers at General Motors, Chrysler and their supplier plants.

Everything that the Treasury does is geared to helping Wall Street……while workers are crapped on daily by this administration.

Remember CEO Pay Outrage?

A few months ago the country was outraged at the amount of compensation that the CEOs of the bailout companies were still getting even after accepting bailout cash.  There was a ground swell of populist anger toward the corporations and the Obama Admin for allowing the people that caused the economic crisis to be generously compensated.

If people recall, there was much anger and chatter about forcing these CEOs into returning their bonuses and such.  And Congress got involved in the outrage and Senators like Dodd added their two cents and said that there woulkd be changes for any company receiving taxpayer money.

Treasury Secretary Geither has said according to the AP:

Financial sector executives should not fear government imposed caps on their salaries even as the Obama administration moves to influence how firms pay their employees. Treasury Secretary Timothy Geithner said Monday that government should place “broad constraints” on the incentives that huge pay packages create for executives to take short-term risks. But he drew the line at government determining levels of pay.”I don’t think our government should set caps on compensation.”

Geithner said government standards could require that incentive pay be tied to long-term performance. He said such standards could combine with compensation disclosure requirements and giving shareholders the ability to vote on salary packages — a practice known as “say on pay.”

Basically, what is being said by Geithner is that the execs can keep their generous and mostly unwarranted bonuses.  The people’s anger was for naught and NO ONE in Washington and the Admin is listening to their concerns.

Once again Wall Street gets the mine….Main Street  gets the shaft.

Was It Blackmail?

Bloomberg had an interesting, yet disturbing story recently, written by Eliot Blair Smith.

Former Treasury Secretary Henry Paulson, saying nine U.S. banks were “central to any solution” of the credit crisis, told their leaders to take government aid or be forced to by regulators, according to a memo prepared for an October meeting.

“If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance,” Paulson’s one-page list of talking points for the session with the banks’ chief executives said. “We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed.”

“Most Americans are going to be uncomfortable with the government forcing the banks into this arrangement,” said Tom Fitton, president of Judicial Watch, a nonprofit research group in Washington that obtained the documents under a Freedom of Information Act request.

I agree but just how “responsible” will the media be and see that the taxpayer knows of this situation?

In his memo, Paulson said the government would buy preferred stock in the banks, which he called “a significant part of our financial system” and “central to any solution.”

Three and a half hours after the meeting was scheduled to begin, Paulson had obtained the bankers’ signatures on half-page forms along with the handwritten amount of the federal government’s investment, according to the documents. He announced the actions publicly the next day.

In releasing the documents yesterday, Judicial Watch said Treasury initially said it had no records about the meeting.

The American people should know all the conditions of the bailout or the promise of transparency was nothing more than a campaign promise that did not come true.