In a Fox Business article purportedly explaining how the new international price-fixing tax agreement is supposed to work, there exists this misconception, or at least it would be a misconception in a free and free market collection of nations.

The deal is designed to target corporations that employ a litany of tactics to reduce their tax liability, often by shifting profits, and revenues, to low-tax countries, such as Bermuda, the Cayman Islands or Ireland, regardless of where the sale was made. The practice by American and foreign multinationals costs the US tens of billions of dollars each year, according to the Treasury Department.

Of course, the practice does no such thing, and Treasury Secretary Janet Yellen demonstrates her monarchist that is Big Government I mean liberal blinders when she makes such a claim.

Since the money isn’t the government’s, its absence costs the government nothing. The practice does, though, save American consumers and other end-users tens of billions of dollars each year, primarily in the form of lower prices, but also in greater R&D and more innovation—which is lower prices later. The practice also generates more business activity, both from existing businesses and from more startups, which increases economic competition—which is lower prices both in the mid- and longer-term.

The practice also attracts businesses to the nations winning the tax race to the bottom, which increases economic activity in those nations, which increases jobs and citizen prosperity; and that increased economic activity also increases competition in those tax race winning nations—which reduces prices for those nations’ citizens.

And all of that increased economic activity produces increased revenues for the various governments, obviating the need for any sort of price-fixing tax agreement.

Only an illiberal—a modern-day liberal—could love higher taxes, bigger government, and the resulting increased government dependency.

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