30 years of “race to the bottom” is enough: Janet Yellen is putting pressure on minimal corporate profits. Of course, it’s not just about fairness.
The United States promotes minimum global corporate taxes among the G20 countries. US Secretary of the Treasury Janet Yellen He said in a speech on Monday that globalization had led to a 30-year race to cut corporate taxes. “Together, we can use minimum taxes around the world to ensure the global economy thrives on an equal opportunity basis in taxing multinational corporations.”
In her speech to the American Institute’s Chicago Council on Global Affairs, Yellen said that countries need “stable tax systems” to generate sufficient income to invest in important public goods and to be able to respond to crises.
Biden needs the money for a massive investment program
US President Joe Biden announced last week that he wanted to increase corporate taxes in his country in order to obtain A $ 2 trillion infrastructure program Financial. The tax rate should be increased from the current rate of 21 percent to 28 percent.
Now, Yilin said, international cooperation is needed on the issue to prevent tax competition and tax base erosion. This is why Biden wants to become more internationally engaged – four years after withdrawing from the “international stage” under his predecessor, Donald Trump.
Plans keep emerging
The US Treasury secretary spoke ahead of the Spring Meetings of the International Monetary Fund and the World Bank, as well as a hypothetical meeting of G20 treasury ministers this week. The most important industrialized and emerging countries are represented in the G20.
Plans to impose minimal taxes on corporations around the world have been around for a long time. This issue is also of concern to the German government. The background to this are the tax evasion strategies of large companies, which, for example, transfer profits mathematically to countries with lower tax rates.
Where President us Joe Biden wants to use a whopping $ 2.3 trillion, the following chart shows.
You can find more illustrations and drawings in the Biden Infrastructure Program In this article.
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