International Taxes

Any American that values national sovereignty should be staunchly apposed to allocating hundreds of billions of dollars more to the United Nations. The last thing the global economy needs right now is an international tax. Set aside from the financial implications both here and in other countries, we have to consider various other implications. Like the fact that taxing authority would be unaccountable to a sovereign authority. And that we would essentially be paying the United Nations to tax us. The United Nations has no authority to enforce global taxes at the current time. Our Constitution prohibits this. Yet according to Reuters, The U.N. World Economic and Social Survey has determined that the needs of developing countries are not being met and new international taxes can alleviate some of the problems that are the result of a “record of broken promises” by donor countries. (Vice President Biden has said he agrees with a Global Minimum Tax)

There are lots of proposed taxes and CNS News summarized a few of them:

Carbon Tax: A tax of $25 a ton of carbon dioxide (CO2) emitted in developed countries…The money could be collected by national authorities, but be earmarked for international cooperation. CO2 is the “greenhouse gas” blamed most often for climate change.

Currency Transaction Tax: A tax of 0.005 percent on all trading in four major currencies – the U.S. dollar, the euro, the yen and pound sterling – would yield around $40 billion a year for international initiatives. The decades-old idea of levying a small charge on financial transactions is sometimes called a “Robin Hood tax” since it supposedly taxes rich nations to benefit poor ones.

The European Union’s executive Commission has proposed the introduction of such a tax – 0.1 percent for shares and bonds and 0.01 percent for derivatives – in the 27-member union with effect from January 1, 2014, an initiative expected to raise just over $70 billion a year. The WESS says a portion of that could be earmarked for international cooperation.

SDRs: Allocation of International Monetary Fund Special Drawing Rights (SDRs) could yield $100 billion a year to purchase long-term assets that could then be used for development finance. Set up in the 1960s, SDRs are used by governments and some international institutions. It is not itself a currency, but its value is based on a basket of the dollar, euro, pound sterling and yen. Some countries, including Russia, China and Brazil, have been pushing the idea of SDRs replacing the greenback as the world’s reserve currency.

Billionaire’s Tax: A tax of around one percent on individual wealth holdings of $1 billion or more, “with the revenue destined to finance internationally agreed global development purposes.” The WESS says this mechanism, which it estimates could raise $50 billion a year, is an option that could be explored but needs further technical elaboration.

“Realizing the potential of these mechanisms will require international agreement and corresponding political will, both to tap sources as well as to ensure allocation of revenues for development,” said Vos.

I can't even begin to imagine what these types of taxes would mean for America. For our sovereignty, our economy and for our future. Competition is a key ingredient in economics and this type of tax can only hurt competition nationally and internationally.