Why Today’s Global Minimum Tax Deal Is a Big Deal
October 8, 2021
Another sign of a new economic paradigm.
The Roosevelt Rundown features our top stories of the week.
136 Nations Just Made History
Today, 136 nations agreed to a deal that would overhaul international tax rules, including a 15 percent global minimum corporate tax—a priority for the Biden administration.
The agreement, implemented effectively, would rewrite corporate taxation rules that have allowed tax havens to flourish and create new rules for Big Tech and other businesses operating globally.
“The global minimum tax deal is not only good for the economy, but it’s also important for democracy,” says Roosevelt President and CEO Felicia Wong. “When 136 countries can come together, we can prevent the world’s largest corporations from hoarding wealth and power at the expense of the world’s citizens.
“That the Biden administration led the way to secure this deal is another sign of a new economic paradigm that the world can and should embrace.”
Jobs Day Takeaway: Invest More Now
September’s disappointing jobs report is a vital reminder: We cannot allow this economic recovery to slow down.
“While most groups saw minor increases in employment, Black men, ages 20 and over, saw their employment stagnate (when seasonally adjusted) and drop (when not seasonally adjusted). Native men also saw a drop in their employment rate, even when seasonally adjusted. Unacceptable,” Roosevelt’s Lauren Melodia tweeted.
“We need continued public investment, like a permanent #ChildTaxCredit and #BuildBackBetter to boost demand, build capacity and speed this recovery back up to meet the needs of those hit hardest by the pandemic and to be an equity boom.”
And on Tuesday, stay tuned for a new issue brief from Melodia and Mason: “Rethinking Inflation Policy: A Toolkit for Economic Recovery.”
A Step Toward Financial Inclusion
For the 14.1 million unbanked or underbanked adults in the US who don’t have easy access to essential financial services, one solution has largely gone untapped: the US Postal Service.
In a new pilot program, the USPS is beginning to offer certain financial services—such as redeeming paychecks for gift cards—at post offices in four locations.
Though the current test program is limited in scale and scope, offering banking services at post offices could be transformative—providing a public, widely available alternative to paycheck-cashing stores and payday lenders that prey on vulnerable populations.
As Roosevelt’s Mehrsa Baradaran wrote last year, “Exclusion is inherent to the historical design of the financial and credit system, a product of policy and institutional decisions shaped by certain industries and beneficiaries.”
To truly increase financial inclusion and create a financial system that works for everyone, she wrote, “we must change the system’s design to ensure democratic access.”
What We’re Reading
America Is Running Out of Everything – The Atlantic