Yellen asks for the global minimum tax rate at the first principal address as secretary of the treasury

Yellen asks for the global minimum tax rate at the first principal address as secretary of the treasury

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“We are working with G20 countries to agree on a global minimum corporate tax rate that could push the race to the bottom. Together, we can use global minimum taxes to ensure the world economy thrives, based on a more equal playing field. in the taxation of multinational corporations and spurs innovation, growth and prosperity, ”Yellen said in a speech to the Chicago Council on Global Affairs.

“Competitiveness is about more than the way U.S. headquarters fare against other companies in global mergers and acquisitions,” she said during the remarks, representing her first important speech as secretary of the Treasury.

“It’s about making sure governments have stable tax systems that generate sufficient revenue to invest in essential public goods and respond to crises, and that all citizens share the burden of government funding fairly.”

President Joe Biden’s infrastructure proposal, called the U.S. Jobs Plan, would increase the minimum tax on U.S. businesses to 21% and calculate it per country to deter companies from protecting profits in international tax havens.

The plan also increases the corporate tax rate to 28%, from 21%. The rate was up to 35% before former President Donald Trump and the Republican Republic cut taxes in 2017.

Yellen had earlier called for a global minimum tax rate, including during her confirmation process earlier this year, when she told a Senate panel that, if confirmed, she would work with our allies on a global tax system that would undermine US competitiveness. protected, while corporations are insured. pay their fair share. ‘
The issue has been discussed by members of the Organization for Economic Co-operation and Development over the past few years, including in 2019, when some finance ministers discussed a potential plan that would ensure, among other things, that multinational enterprises pay a minimum tax level, allowing discourage them from shifting profits to countries with lower tax levels. However, the plan never materialized.

This story has been updated.

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