secretary of the treasury Janet yellenJanet Louise Yellen The Hill’s Morning Report: Biden’s Infrastructure Plan Triggers Definition Debate 2024 Republican White House Aspirants Lead Opposition to Biden’s Cabinet COVID Interrupted a Latino Business Boom – Recovery Should Aim to Restore It MORE On Monday he pushed for a global minimum corporate tax rate during his first major speech in his new position as the Biden administration seeks to enact an infrastructure plan funded by increased taxes on corporations.
“Together we can use a global minimum tax to ensure that the global economy thrives on a more level playing field in the taxation of multinational corporations and spurs innovation, growth and prosperity,” Yellen said at an event. hosted 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 held virtually.
President BidenJoe BidenBiden should look to ‘Ostpolitik’ to negotiate with autocrats The Hill’s Morning Report: Biden’s infrastructure plan sparks definition debate The memo: Biden’s bet on taxes MORE Last week he proposed a series of corporate tax changes that his administration said could raise more than $ 2 trillion over 15 years to pay for infrastructure investments. The plan would raise the U.S. corporate tax rate from 21 percent to 28 percent, raise a minimum U.S. tax on corporate foreign earnings to 21 percent, and take steps to prevent companies from relocating their headquarters and jobs. abroad.
Critics of raising corporate taxes argue that doing so would make the American business climate less competitive compared to other countries that have cut their corporate tax rates in recent years.
Yellen said the Biden administration wants to end a global “race to the bottom” in corporate tax rates by working with other countries in the G20 on an agreement for a global minimum tax rate. He said this effort is important to ensure that countries can raise the revenue they need to provide necessary public services.
“Competitiveness is more than how US-based companies perform against other companies in global M&A bids,” Yellen said. “It’s about making sure that governments have stable fiscal systems that generate enough revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing the government.”
A Treasury official said Monday that the G20 has set a goal of reaching a political agreement on international tax issues by July and that the administration is still working towards 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 US companies from moving their headquarters, assets and jobs to tax havens.