Adewale Adeyemo, Deputy Treasury Secretary Janet Yellen, said Wednesday that raising the corporate tax rate in the U.S. to 28% will not make U.S. companies less competitive, because the Biden administration is confident that it can win the support of developed nations to set a minimum tax worldwide.
“We have worked very closely with our international counterparts to counter what has been a race to the bottom in terms of international taxation,” Adeyemo, who goes through Wally, told CNBC’s Sara Eisen.
“We believe through the two things we will do globally in terms of the G-20, where the United States has made it clear that we are back and we hope to lead the world, we are able to reach an agreement that will attract the vast majority. of developed countries in the world to set a minimum tax, ”Treasury official no.
Yellen said Monday he was working with the group of 20 nations to create a minimum corporate tax that would prevent companies from moving abroad to find lower rates. President Joe Biden has made raising the U.S. corporate tax rate a central mechanism to fund his huge $ 2 trillion infrastructure plan.
The Republican Party is also widely opposed to reversing former President Donald Trump’s tax cuts in 2017, which reduced the rate companies pay for profits from 35% to 21%. The Biden plan would not only partially reverse the corporate tax cut, but would also affect other key provisions of Trump’s Tax Cuts and Occupations Act.
The president opened the doors on Wednesday to a compromise with his proposed corporate tax increase, but said the U.S. should act boldly on infrastructure if it wants to keep up with nations. such as China.
Adeyemo defended the Biden administration’s comprehensive infrastructure plan and said the U.S. needs investments beyond road and bridge repairs to compete globally in the modern era.
“The investments the president is asking for in the job package are the same investments that Chinese and other countries are making,” Adeyemo said. “It’s important that we do them now to make sure the United States can compete in the 21st century.”
He said the Biden plan and the broader definition of White House infrastructure are not only favored by progressive politicians but also by Wall Street executives.
When asked to address the criticism that the one-generation plan is too big and not focused enough, Adeyemo stepped back.
“The pandemic has taught us that not only can we think about traditional infrastructure, which is roads, bridges and ports, but we need to think about what we need to compete in the 21st century, which includes things like broadband.” “Adeyemo said.”
“One of the groups that has been most hit by Covid-19 has been those that have to pay attention to others because they have not been able to get into the squad,” he added. “There are several investments we are making here to make sure these people have the support and infrastructure around them to ensure they can return to the workforce and contribute to the economy.”
Adeyemo’s comments came a week after Biden first debuted his long-standing infrastructure proposal in Pittsburgh.
The U.S. Employment Plan, if approved, would invest hundreds of billions of dollars in transportation infrastructure, water systems, broadband access, power grids, job training and other provisions. It is asking for $ 400 billion to care for American seniors and people with disabilities, as well as $ 300 billion to build and renovate affordable housing.
Republicans are virtually united in their opposition to the plan as it is written, considering the legislation is too expansive in light of the $ 1.9 trillion Covid-19 aid package the Democrats navigated through Congress in earlier this year.
Both Yellen and Adeyemo have made history in the Treasury Department as the first woman to head the agency and the first black deputy secretary, respectively.