Treasury Secretary Janet Yellen
Morning report by Janet Louise YellenThe Hill – Biden’s infrastructure plan sparks debate over definition on Monday, he pushed for a global minimum corporate tax rate during his first major speech in his new role, while the Biden government is trying to enact an infrastructure plan financed by rising corporate taxes.
“Together, we can use a global minimum tax to ensure that the global economy thrives on the basis of a more equitable playing field in the taxation of multinational corporations and stimulates innovation, growth and prosperity,” said Yellen at a virtual event organized by Chicago Council for Global Affairs.
The speech comes at the beginning of the spring meetings of the World Bank and the International Monetary Fund, which are being held virtually.
President biden
Joe BidenBiden should seek ‘Ostpolitik’ to negotiate with autocrats The Hill’s Morning Report – Biden’s infrastructure plan sparks debate over definition Memorandum: Biden’s bet on taxes MORE Last week, he proposed a series of changes in corporate taxes that, according to his government, could raise more than $ 2 trillion in 15 years to pay for infrastructure investments. The plan would increase the U.S. corporate tax rate from 21% to 28%, increase the US minimum tax on corporate profits abroad to 21%, and take measures to prevent companies from moving their headquarters and jobs abroad.
Critics of the corporate tax hike argue that this would make the business climate in the United States less competitive compared to other countries that have reduced their corporate tax rates in recent years.
Yellen said the Biden government wants to end a global “bottoming race” in corporate tax rates by working with other G20 countries in an agreement for a minimum global tax rate. She said that this effort is important to ensure that countries can increase the revenue they need to provide the necessary public services.
“Competitiveness is more than how companies based in the USA fare against other companies in global merger and acquisition offers,” said Yellen. “It is 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 fairly the burden of financing the government.”
A Treasury official said on Monday that the G20 had set a goal to reach a political agreement on international tax issues by July and that the government is still working to achieve that goal. The official acknowledged that some countries may not sign an agreement on a global minimum tax, but said that a series of Biden tax proposals are aimed at preventing American companies from transferring their headquarters, assets and jobs to tax havens.