GZERO Media logo

Tax Take: How the US Stacks Up

Tax Take: How the US Stacks Up

The US senate has passed a tax proposal that would dramatically reshape America’s economy. A final bill isn’t exactly a slam dunk, but it’s got a good shot of passage in the coming weeks. Here are four questions on the issue:


What about the other guys? Trump has complained that the US has the highest corporate tax rate in the world. That’s only partly true. The rate that’s on the books is higher than in most other countries, but the rate that corporations actually pay, when deductions and other loopholes are factored in, is actually in line with other advanced economies.

What about inequality? Not much. The US already does the least among large industrialized countries to redistribute income via its tax system. The new tax bill doesn’t change that: it’s projected to disproportionately benefit those at the higher end of the income spectrum. Whether you think that’s good or bad is a deeply ideological question that you should definitely bring up at the dinner table.

What about growth? In a survey of professional economists, only 1 out of 42 said they believe growth with be “substantially higher” in decade as a result of the proposed cuts. Business leaders are split on whether a tax cut would impact their hiring and investment decisions.

What’s the hurry? The last major tax reform in the 1980s took years to pull together — but this time around the GOP majority is scrambling to ram this one through.

Khant Thaw Htoo is a young engineer who works in Eni's Sakura Tower office in the heart of Yangon. As an HSE engineer, he monitors the safety and environmental impact of onshore and offshore operations. He also looks out for his parents' well-being, in keeping with Myanmar's traditions.

Learn more about Khant in the final episode of the Faces of Eni series, which focuses on Eni's employees around the world.

On his first day as president, Joe Biden signed a remarkable series of executive orders. Boom! The US rejoins the Paris Climate Accord. Bang! The United States rejoins the World Health Organization. Pow! No more ban on immigration from many Muslim-majority countries. Biden's press secretary reminded reporters later in the day that all these orders merely begin complex processes that take time, but the impact is still dramatic.

If you lead a country allied with the US, or you're simply hoping for some specific commitment or clear and credible statement of purpose from the US government, you might feel a little dizzy today. The sight of an American president (Barack Obama) signing his name, of the next president (Donald Trump) erasing that name from the same legislation/bill, and then the following president (Biden) signing it back into law again will raise deep concerns over the long-term reliability of the world's still-most-powerful nation.

More Show less

"There needs to be a dramatic and deep reduction in the amount of debt on the poorest countries. That's clear." As the world's poorest nations struggle to recover from a devastating pandemic, World Bank President David Malpass argues that freeing them of much of their debt will be key. His conversation with Ian Bremmer is part of the latest episode of GZERO World.

Listen: Renowned tech journalist Kara Swisher has no qualms about saying that social media companies bear responsibility for the January 6th pro-Trump riots at the Capitol and will likely be complicit in the civil unrest that may continue well into Biden's presidency. It's no surprise, she argues, that the online rage that platforms like Facebook and Twitter intentionally foment translated into real-life violence. But if Silicon Valley's current role in our national discourse is untenable, how can the US government rein it in? That, it turns out, is a bit more complicated. Swisher joins Ian Bremmer on our podcast.

Ian Bremmer discusses the World In (more than) 60 Seconds:

Biden's first scheduled call with a world leader will be with Canada's Justin Trudeau. What's going on with the Keystone Pipeline?

Well, Biden said that that's it. Executive order, one of the first is that he will stop any construction or development of the Keystone Pipeline. This is of course an oil pipeline that would allow further oil sands oil to come to the United States. The infrastructure is significantly overstretched, it's led to backlogs, inefficiency, accidents, all the rest, but it also facilitates more energy development and keeps prices comparatively down if you get it done. So, there are lots of reasons why the energy sector in Canada wants it. Having said all of that, Trudeau, even though he's been a supporter of Keystone XL, let's keep in mind that he did not win support in Alberta, which is where the big energy patch in Canada is located. This is a real problem for the government of Alberta, Canada is a very decentralized federal government, even more so than the United States. The premier of Alberta is immensely unhappy with Biden right now, they've taken a $1.5 billion equity stake in the project. I expect there will actually be litigation against the United States by the government of Alberta. But Trudeau is quite happy with Biden, his relationship was Trump was always walking on eggshells. The USMCA in negotiations ultimately successful but were very challenging for the Canadians, so too with the way Trump engaged in relations on China. All of this, the fact that Trump left the nuclear agreement with Iran, the Paris Climate Accords, WHO, all of that is stuff that Trudeau strongly opposed. He's going to be much more comfortable with this relationship. He's delighted that the first call from Biden is to him. And it certainly creates a level of normalcy in the US-Canada relationship that is very much appreciated by our neighbors to the North.

More Show less
The GZERO World Podcast with Ian Bremmer. Listen now.

GZEROMEDIA

Subscribe to GZERO Media's Newsletter: Signal