Little noticed during the presidential campaign was a call by France and Brazil for a system of global taxation to fight poverty.
French President Jacques Chirac told the United Nations Sept. 21 that it is time to consider a global tax on various items, including international financial transactions, airline tickets, greenhouse gas emissions and the sale of heavy weapons.
“A taboo is lifting,” he said. For the world’s sake, the taboo should remain firmly in place.
Why? For one, because of the effect of such taxes on global commerce. And secondly, because the United States would no doubt be hit with more such taxes than any other nation.
Consider global finances. Thanks to the Internet, individuals can invest in stock markets around the world. A tax on such investments would encourage investors to stay at home.
Thus, that new drug in Switzerland may not get the capital it needs to be developed. That biochip in Japan may die for want of investment. And that power plant in Mexico may not open because there wasn’t enough international support.
Investors would also retreat from international currency markets, where about $1.5 trillion is traded daily. The profit from such trading helps fund business expansion, research and development, and start-ups.
Taxing greenhouse emissions might reduce emissions, but it would also reduce the economic activity generated by trucks, factories and cattle farms (cow flatulence is a significant contributor to the growth in greenhouse gases).
Finally, you only have to look at France’s tax burden to see that Chirac wants to impose taxes on any country but his.
According to the Organization for Economic Cooperation and Development, France takes 59 percent of the average personal wage in income, payroll and local taxes. Germany takes an even higher 66 percent
The United States, however, takes just 34 percent.
Having reached the limit in taxing its own people, France would like to turn to the “greener” pocketbooks in America.