Minister of Finance Janet Yellen
Janet Louise Yellen: The Hill’s Morning Report: Biden’s Infrastructure Plan Triggers Debate on 2024 Definition GOP White House candidates lead opposition in Biden’s cabinet. on Monday pushed for a global minimum corporate tax rate during its first major speech in its new role as the Biden administration seeks to enact an infrastructure plan funded by raising corporate taxes .
“Together we can use a global minimum tax to ensure the global economy thrives based on more equitable conditions in the taxation of multinational corporations and foster innovation, growth and prosperity,” Yellen said at an event organized by Chicago Global Affairs Council.
The speech comes at the beginning of the spring meetings of the World Bank and the International Monetary Fund, which are being held practically.
President Biden
Joe BidenBiden should seek “Ostpolitik” to negotiate with autocrats The Hill’s Morning Report – Biden’s infrastructure plan triggers definition debate Note: Biden’s commitment to taxes MORE last week he proposed a series of corporate tax changes that his administration says 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%, raise the minimum corporate income tax for companies to 21%, and take steps to prevent companies from relocating headquarters and locations. working abroad.
Critics of rising corporate taxes argue that doing so would make the U.S. business climate less competitive compared to other countries that have reduced their corporate tax rates in recent years.
Yellen said the Biden administration wants to end a “race to the bottom” of corporate tax rates by working with other G20 countries in an agreement for a global minimum tax rate. He said this effort is important to ensure that countries can increase the revenue they need to provide the necessary public services.
“Competitiveness is more than the way U.S.-based companies behave against other companies in global merger and acquisition offerings,” Yellen said. “It’s about making sure governments have stable tax systems that raise enough revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of government funding.”
A Treasury official said on Monday that the G20 has set itself the goal of reaching a political agreement on international tax issues before July and that the administration is continuing to work to achieve that goal. The official acknowledged that some countries may not end up signing an agreement on a global minimum tax, but said several of Biden’s tax proposals are aimed at preventing U.S. companies from relocating their headquarters, assets and jobs in tax havens.