Omg! The US is proposing to set the minimum global corporate tax rate at 21% which is much higher than Singapore's corporate rate tax of 17%. This means SG will have to increase its corporate tax by 4% to 21% for compliance and this will increase the cost of doing business. It doesn't make sense for SG to have a high corporate tax because SG is not a welfare state and SG doesn't have unemployment and other benefits like the western countries.
Western countries need high taxes because they have welfare and retirement benefits but many Asian countries do not. Therefore, Asian countries cannot afford to follow western economic policies.
As the world bank and IMF are under the control of these western countries, they can easily force Asian countries to comply with the "global rules" that they set. Therefore, we need to set up our own Asian Bloc to serve and protect our own Asian interests.
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https://finance.yahoo.com/news/explainer-global-minimum-tax-could-050000067.html
Although countries still can set their own corporate tax rates, companies must still top up the shortfalls in the foreign tax rates in their home countries.
Therefore, if SG doesn't hike the corporate tax to 21% from 17%, SG will be giving up 4% of tax revenues to another country because the companies have to top up the differences in their home countries. It will look stupid if SG doesn't hike its corporate rate.
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