As corporate America is digesting proposed tax hikes as part of POTUS's infrastructure package, Treasury Sec. Yellen is pushing for a Global Minimum Tax Rate (lobbying other countries to commit to a tax floor).

Yellen frames it as a way to “stop the race to the bottom” and foster more equitable economic growth among countries and regions.
A global minimum tax would be a giant win for Biden and could help American multinational companies who are likely to see a tax hike from being at a competitive disadvantage.
If all multinational companies faced the same tax rate, corporate America would have NO REASON to set up “figurehead offices” in low tax countries or globe troll for the cheapest labor/tax combo.
However, implementing this would be VERY difficult. Low tax countries would not agree to this. They use their taxation structure as a carrot to lure business in.
Yellen may be respected around the world, but the likes of China, Russia and those who use the current structure to their advantage have NO reason to play ball.
More on this here.


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More from @SRuhle

12 Mar

As we look at the “year that was”.... When the WHO declared Covid-19 a pandemic, markets went into free fall. A few days later on Monday, March 16, 2020, markets had their worst day of the pandemic.
S&P fell 325 points (-324.89) nearly 12%.

The Dow lost nearly 3,000 points (-2,997.10) nearly 13%.

The Nasdaq lost over 970 points (-970.29) nearly 12%.
Markets continued to struggle as states shut down, with hardest hit industries like travel & hospitality laying off thousands and suffering huge market losses.

Conversely, tech-giants enabling work-from-home & e-commerce behemoths/essential retailers soared.
Read 8 tweets
11 Mar
BREAKING: @Sen_JoeManchin just confirmed to me that he will vote to support the nomination of Xavier Becerra for HHS Secretary.

See his statement below:
“As our nation faces deep divides and a healthcare crisis that has taken the lives of far too many Americans, we must commit to working together to heal our nation...”
“...While Xavier Becerra and I do not agree on every issue, he has affirmed to me his dedication to working with Members on both sides of the aisle to address the impacts of the COVID-19 pandemic and the numerous needs of our nation in a bipartisan way...”
Read 8 tweets
21 Feb
It’s Saturday Night, Let’s Get NERDY...
Why are some Texans seeing crazy electric bill spikes? It goes beyond supply/demand & really cold temperatures. It’s about deregulation and risk management.
2/ Bc Texas electricity mkt is so competitive, providers offer all sorts of incentives & unusual offerings like wholesale prices vs fixed. Why is this the worst moment for wholesale?
3/ The obvious: supply/demand In the face of record demand to heat homes, supply crashed.
- cold snap made everyone jack up the heat in their homes
- cold snap caused some power generation plants to shut down which reduces supply
Read 9 tweets
10 Feb
THREAD: Insights from 2 of the CEOs who met with President Biden yesterday...It was described as a very serious and detailed meeting, where a wide range of topics were discussed.
The room agreed that tackling the health crisis is paramount, but the economic crisis remains complicated and problematic...fearing the worsening “K” recovery [where growing income inequality, rich richer, poor poorer] vs. a “V” recovery (snap back)
Biden started with the vaccine rollout and the room concurred that the number one thing we need is to get the vaccine into America’s arms. Biden also covered education, skills gap, infrastructure, healthcare with no specific timeline.
Read 14 tweets
30 Jan
THREAD on Robinhood/Reddit/GME: CONGRESS is calling for action, but no one has clearly articulated what they actually want.

We could look back on this as the biggest “Pump & Dump” in history... with the little guys carrying all the water & then getting it dumped on their heads.
It started with a SMART discovery, Melvin Capital (hedge fund) broke the cardinal rule of short selling. They took on way too big of a short position given the size of their fund, how heavily shorted the stock already was and the amount of shares outstanding.
Technically, they were RIPE to get squeezed, but there was virtually no case for anyone following fundamentals (earnings, growth etc...) to want to buy this sleepy, brick and mortar video game retailer.
Short selling is absolutely legal and adds to efficiency of the market.
Read 17 tweets
15 Jan
THREAD: Let’s dig into Biden’s econ proposal. I know there are a lot of numbers to dig through, but I wanted to note something:

The American Family Act, Child Tax Credit expansion included in the Biden proposal.

It could have a massive impact towards addressing child poverty.
According to Columbia University: American Family Act will CUT Child Poverty by 40% - which is remarkable from a notable and economic stand point.
While it might sound like a big spend now, the cost to our economy long term from millions of children missing opportunities because they are born into poverty is enormous. (National Academy of Sciences estimates child poverty costs our country between $800bn-$1.1tr a year)
Read 6 tweets

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