LONDON – French Finance Minister Bruno Le Maire on Monday welcomed the support of President Joe Biden’s government over a proposed global tax on technology giants, saying a multilateral agreement could take effect in the spring.
This comes shortly after Biden’s nominee as treasury secretary, Janet Yellen, expressed her support for appeals to technology companies to pay a larger share of their income in the countries in which they operate.
Former President Donald Trump strongly opposed the proposed tax arrangements, saying they discriminated against US businesses.
Le Maire said via video conference during the Davos Agenda summit: ‘I think it is very good news that the new Minister of Finance, Janet Yellen, has just explained that she was open about the idea of thinking about a new international load with the two pillars. : In the first place digital tax and of course also a minimum tax on corporate tax. ‘
“I think we are on the right track. There is a possibility that by the end of this spring 2021 we will find an agreement on this new international tax system. And I can tell you that we will do our best to get out of the way. to pave the way for a deal, ”Le Maire told CNN’s Geoff Cutmore.
Yellen supported calls for a new global tax on tax giants during a Senate confirmation hearing last week.
“This will enable us to raise a fair share of companies while maintaining the competitiveness of our businesses, and reducing the incentives that US companies now have for foreign operations,” Yellen said. Agence France-Presse, wire service, reported on January 20.
The French Minister of Economy and Finance, Bruno Le Maire, speaks at a press conference in Paris on 14 January 2021.
THOMAS COEX | AFP | Getty Images
International taxation
Le Maire added: “The winners of the economic crisis are the digital giants. How can you explain to some sectors that have been hit hard by the crisis and what (their) taxes are paid that the digital giants do not have to pay? The same amount of tax paid? “
“It’s unfair” and ineffective, he said.
Asked if it is prudent for France to levy corporate taxes amid the coronavirus pandemic, Le Maire replied: “We must do our best to maintain the same level of investment, otherwise we are clearly running the risk with the “open countries to emerge from the technological race of the 21st century. And we need to think about the kind of economy we want to build.”
“We want to build a sustainable economy. We want to reduce inequalities between countries. And we also want to reduce inequalities in the international tax system.”
The World Economic Forum is being held online this year due to the coronavirus crisis. A physical assembly of business leaders, political thinkers and heads of state will take place in Singapore in May.