December 3, 2023

Yellen's proposal for minimum taxes - The United States wants to stop tax competition

Yellen’s proposal for minimum taxes – The United States wants to stop tax competition

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.

“Together we can use minimum taxes worldwide”: US Treasury Secretary Janet Yellen.

Photo: Andrew Harnick (Keystone)

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.