29 March 2011

Corporate Tax Crisis ... a symptom of a faltering world economic order in grave need of reform

Here's a short piece on the "race to the bottom" in terms of corporate tax rates as part of a global process of shifting wealth to the rich and powerful.

The solution to this problem, unfortunately, is probably out of the hands of any one country. We need a new Breton Woods type international agreement whereby nations will have the ability to impose realistic taxes on corporations and wealthy individuals, and prevent the sheltering of assets and profits in low or no-tax havens. There is absolutely nothing sacred about the present system that allows private corporations and individuals to engage in what amounts to racketeering at the expense of the public welfare of the nations of the world.

I am increasingly convinced that the post-WWII regimes that we've held on to since the end of the Cold War, both geopolitical and economic, are faltering and leading our whole world into a path of environmental ruin and economic collapse. Our country can be a leader, forging bold new approaches, or it can just let the situation fester, while the new economies of India and China develop without realistic environmental checks and balances, and while private wealth becomes increasingly sheltered and concentrated, to the detriment of the national interests of the developed countries including the US. The issues are not simple, not well known to the public, and will require some very significant changes of policy direction to properly address. What is needed is strong leadership, and so far, at least, I have seen no evidence of it from the Democratic party.

The Republican Party, of course, is fully committed to ruinous decline, so they are hopeless.

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