As California continues to rebuild after the greatest crisis of our lifetimes, some Washington politicians are once again demonstrating their disconnect from the realities of our tax system and the impacts of bad policy on American consumers.
A perfect example is what is currently happening with President Biden’s Build Back Better Act as Washington lawmakers are currently planning to increase the rate of a little-known tax called the Global Intangible Low Tax Income or GILTI.
GILTI is a tax on American multinational corporations intended to discourage companies, largely in the technology sector, from shifting profits on easily moveable items, such as intellectual property, to other countries with lower tax rates.