Joseph Stiglitz contends that the Trump administration's actions, including withdrawal from transparency regimes, rejection of international tax cooperation, and massive crypto deregulation, are turning the United States into the world's largest tax haven.
These actions, Stiglitz argues, are part of a broader strategy to undermine institutional safeguards, violate international treaties, and ignore conflicts of interest. The focus is not on policy debate but on disregarding the rule of law.
Stiglitz critiques Trump's reliance on import tariffs, highlighting that they increase domestic prices and are levied at an economically inopportune time. He also points out that tax cuts for billionaires, contrary to conservative claims, do not boost economic growth but worsen income inequality. Furthermore, these policies increase the trade deficit, contrary to Trump's goals. The article cites studies showing that tax cuts for the rich have no measurable positive impact on growth or unemployment.
The author argues that Trump's policies are harming major US export sectors like tourism, education, and healthcare. The administration's actions regarding student visas and science research are cited as evidence of this damage. Stiglitz emphasizes the importance of global cooperation for fair taxation of multinationals and the ultra-rich and criticizes the US's withdrawal from international agreements in this realm. He notes that the absence of US diplomacy might ironically strengthen multilateral tax negotiations.
Stiglitz highlights the role of unregulated crypto exchanges and platforms in boosting the global illicit economy. He criticizes the Trump administration's actions that facilitate the use of cryptocurrency for money laundering and tax evasion. The appointment of crypto insiders to key positions, such as within the SEC, is presented as further evidence of this strategy.
The author concludes that the described actions represent not just a tax revolt but a broader assault on the rule of law designed to facilitate the extreme accumulation of wealth and power. He advocates for global cooperation and the building of inclusive institutions to address extreme inequality.