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I think Biden's proposals are probably a sincere attempt to get global corporations to pay a greater share of US taxes and in this way to reduce the tax burden on the less well off in the USA, relatively speaking.

But essentially, on an international level, they are also an attempt to avoid "a race to the bottom" with different countries competing for FDA using lower tax incentives. So far so good.

But then how are smaller peripheral states to compete with larger central states  for global investment? The logic of global capitalism is the ever increasing centralisation of capital in the larger capitalist centres.

How is Latvia then supposed to compete with Germany for investment? There is virtually no redistributive force within the EU (max EU budget c. 2% GDP) to provide ongoing structural supports to the Latvian economy to level the playing field. How would Minnesota compete with New York without some Federal support?

There is a very good reason why national capitals have jealously defended their continuing sovereignty in taxation matters, even as they ceded some sovereignty in fiscal mattes as part of the European Fiscal Treaty.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Sep 8th, 2021 at 04:58:43 PM EST
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