Janet Yellen, the U.S. Treasury Secretary, called on other countries to join Washington in setting a global minimum tax for businesses, vowing to reaffirm U.S. leadership in international economic policy.
“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 drives innovation, growth and prosperity,” Janet Yellen said in a speech to the Chicago Council on Global.
The Treasury Secretary’s appeal comes on the eve of spring IMF and World Bank meetings as the Biden administration places crackdown on tax evasion and tax shelters at the heart of its economic agenda. The White House last week released an investment plan of more than $ 2 billion to revamp decaying infrastructure and boost clean energy. A plan that the United States hopes to finance through a higher corporate tax rate and other measures designed to stop the shifting of profits for tax reasons.
The United States is already pushing for a multilateral agreement on digital taxation at the OECD by the summer, but Janet Yellen’s speech is part of an even broader agreement on corporate taxation encompassing the G20 and other countries.
However, the tax hike clashes with the beliefs of Republicans and business groups who have said such increases will hurt the competitiveness of U.S. multinationals.
“America First should never mean America alone. For in today’s world, no country on its own can provide a strong and sustainable economy for its people. leadership and global engagement makes our institutions and our economy vulnerable, ”she said.
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