Yellen proposes a global corporate tax …

United States Treasury Secretary Janet Yellen said the United States will negotiate with the rest of the G-20 countries to coordinate a minimum corporate tax. “Together, we can use a global minimum tax to ensure that the economy thrives on a more level playing field for multinational companies and that innovation, growth and prosperity are driven,” he said. declared.

The North American official’s statements are part of President Joe Biden’s recent proposal to increase corporate income tax from the current 21% to 28% to recoup some of the reduction applied by the government precedent by Donald Trump, who lowered the tax by 35 percent. More broadly, Yellen has said she wants “to end 30 years of lower corporate tax rates.”

The Democratic administration is seeking to raise corporate income taxes to fund a massive $ 2.3 trillion infrastructure plan to create jobs. As part of the new global tax umbrella, Yellen wants to prevent companies from avoiding higher taxes by moving their activities to other low-tax jurisdictions. This is why he advocated an “international effort to end a career in order to minimize this tax in order to gain competitiveness”. With the global tax, businesses would be prevented from carrying out the typical tax evasion actions disguising operations in low tax jurisdictions.

The proposal announced by President Biden calls for ambitious actions, including increasing the minimum corporate tax rate in the United States and a renewed commitment at the international level, recognizing the importance of working with others countries to end competitive pressure and corporate tax erosion, “said Yellen, who explained that he wanted to push for an international tax deal within the framework of the United Nations. Economic Cooperation and Development (OECD), with a view to establishing a set of standards including technology companies.

Due to its global nature, the initiative is reminiscent of the “Tobin tax”, a tax on financial transactions that took off with the subprime crisis of 2008. The idea of ​​this tax was to reduce the volatility of international currency markets and strengthen the finances of nation states.