International tax and trade are inter-related. Biden’s corporate tax reforms and proposals will impact global trade. That’s good. Addressing global trade issues is not the primary purpose of Biden’s tax proposals, which seem to be aimed at paying for his domestic agenda.

But they are, to an extent, intentionally designed to impact also international trade and commerce transactions. In part, to make sure that global corporations pay their fair share and don’t stay as free-riders while everyone else pays income tax. Global firms especially internet firms have billions of dollars offshore and avoid paying most income taxes to the United States and the countries where real economic activity takes place.

Global tax havens and offshore LLCs need to be restricted. Real economic activity should be subject to national taxation. Transfer transactions, phoney routing of transactions and ownership of assets including intellectual property rights need to be addressed.

We are dealing with multinational corporations and a nation-based tax system. Bilateral tax treaties are outdated.

A multi-jurisdictional world need to cooperate for the benefit of all. Working with the OECD and our trading partners is a start, long overdue. Tax avoidance and tax evasion is not pretty. It’s time for us to catch up with actual trading patterns and technological changes. The U.S. should take the lead — it would help us internationally and domestically.