Global minimum corporate tax, it’s despicable, dangerous and it’s going to happen – Rick Rule

U.S. Treasury Secretary Janet Yellen has proposed a global minimum tax rate for companies.

“We are working with G20 countries to agree on a global minimum tax rate that could push the race to the bottom. Together, we can use the global minimum tax to ensure the global economy thrives, based on a more equal playing field. in taxing multinational corporations and stimulating innovation, growth and prosperity, ‘Yellen said during a meeting with the Chicago Council on Global Affairs.

Rick Rule, director of Sprott Inc., called the proposal “contemptible” and said it was more an attempt by the government to use raw power than to create wealth.

“I think it’s despicable, I think it’s dangerous, I think it limits investment, I think it encourages misinvestment by governments, I think it’s worse than bad and I think it’s going to happen,” Rule said recently. stepped down as president. from Sprott US Holdings, a global alternative asset manager, focusing on precious metals and fixed assets.

“It’s not about fairness, let’s fix it, it’s about envy. To the extent that governments have the ability to push compellingly across borders, they will do it. It’s simply about less freedom and more centralized “The big thinkers of the world, the IMF, the elected politicians, are not doing their job. They do not have to convince their customers, they are trading in raw power,” Rule told Michelle Makori, editor-in-chief of Kitco. News.

Rule noted that although Yellen has called for international cooperation and the draft has already been approved by the IMF, the US really does not need it to implement it.

“The US government is so powerful and the US economy is so powerful that the United States can act almost unilaterally with respect to US taxpayers, no matter what other G20 countries do,” he said. “It’s ironic that the only hope for free people when it comes to this could be places like Russia or China.”