Yellen pushes corporate minimum tax globally

secretary of the treasury Janet YellenJanet Louise Yellen The Hill’s Morning Report – Biden’s infrastructure plan sparks debate over 2024 definition White House GOP hopes lead opposition to Biden COVID cabinet disrupted Latin American business boom – the recovery should aim to restore it On Monday, in his first big speech in his new role, the Biden administration is looking to pass an infrastructure plan funded by raising corporate taxes.

“Together, we can use a global minimum tax to ensure that the global economy thrives on a more level playing field in the taxation of multinational corporations, and drives innovation, growth and prosperity,” Yellen said at a virtual event hosted by the Chicago Council on Global Affairs.

The speech comes at the start of the spring meetings of the World Bank and the International Monetary Fund, which are being held virtually.

President BidenJoe Biden Biden Should Turn To ‘Ostpolitik’ To Negotiate With Autocrats The Hill’s Morning Report – Biden Infrastructure Plan Sparks Definition Debate The Memo: Biden’s Tax Bet READ MORE Last week, he proposed a series of corporate tax changes that his administration said could raise more than $ 2 trillion over 15 years to fund infrastructure investments. The plan would increase the U.S. corporate tax rate from 21% to 28%, raise a U.S. minimum tax on foreign corporate profits to 21%, and take measures to prevent companies from moving their headquarters and offices. jobs abroad.

Critics of the increase in corporate taxes argue that it would make the business climate in the United States less competitive compared to other countries that have lowered their corporate tax rates in recent years.

Yellen said the Biden administration wanted to end a global “race to the bottom” on corporate tax rates by working with other G20 countries on an agreement for a global minimum tax rate. She said this effort is important to ensure that countries can generate the income they need to provide necessary public services.

“Competitiveness is not all about how US-headquartered companies stack up against other companies in global M&A tenders,” Yellen said. “It’s about ensuring that governments have stable tax systems that generate enough revenue to invest in essential public goods and respond to crises, and that all citizens share the burden of funding government fairly.”

A Treasury official said on Monday that the G20 had set a goal of reaching a political agreement on international tax issues by July and that the administration was still working towards that goal. The official acknowledged that some countries might not end up signing a global minimum tax deal, but said a number of Biden’s tax proposals are aimed at preventing US companies from moving their headquarters, assets and jobs. towards tax havens.