April 6, 2021
2 mins read

Yellen urges minimum corporate tax

“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom,” said Yellen..reports Asian Lite News

US Treasury Secretary Janet Yellen on Monday called for a global minimum tax rate on corporations that would provide a more level playing field for all countries.

“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom,” Yellen said in prepared remarks for a virtual event hosted by the Chicago Council on Global Affairs, the Xinhua news agency reported.

“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth, and prosperity,” she said.

Yellen’s remarks came after US President Joe Biden last week proposed a series of corporate tax changes that could raise roughly $2 trillion over 15 years to pay for infrastructure investments in 8 years.

US President Joe Biden

The Biden proposal would increase the US corporate income tax rate to 28 per cent, up from the current 21 per cent, attempting to partially reverse the tax cuts under the Donald Trump administration.

It would also raise the global minimum tax on US multinational corporations from 10.5 per cent to 21 per cent, in a bid to discourage offshoring and create incentives for investment in the US.

Yellen said that the Biden administration wants to end a “thirty-year race to the bottom” on corporate tax rates around the world.

Also read:Biden picks Indian American as Washington judge

“It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government,” she said.

Yellen also emphasized that global cooperation is needed to address global challenges such as the Covid-19 pandemic, technological change and climate change, as “no one country will be successful if it goes at it in isolation”.

“Over the last four years, we have seen firsthand what happens when America steps back from the global stage. America first must never mean America alone,” she said.

Yellen’s remarks also came as global financial and central bank officials begin to gather online this week for the spring meetings of the International Monetary Fund and the World Bank.

Yellen said that she would use the spring meetings to advance discussions on climate change, strengthen tools to improve vaccine access and financing for the world’s poorest countries, increase the focus on inequality and support a strong global economic recovery.

Also read:Biden’s boost for infra, jobs

Previous Story

Russia upset over US, UK missile deployment

Next Story

New Zealand-Australia travel bubble soon

Latest from -Top News

BRICS must break the digital chains

BRICS nations need to build consensus, balance innovation and social justice by reinforcing the digital sovereignty of Global South, including evenly distribution of benefits through AI, writes Baidya Bikash Basu BRICS, the

Modi begins landmark Argentina visit

First Indian PM to visit in 57 years; economic ties, lithium and trade top agenda Prime Minister Narendra Modi kicked off a historic visit to Argentina on Saturday by paying homage to

Texas flash floods kill at least 24; Trump vows help

President calls tragedy ‘shocking’ as search for missing continues overnight At least 24 people have died in Kerr County, Texas, after catastrophic flooding swept through the region, prompting a large-scale rescue and
Go toTop

Don't Miss

US troops pull out won’t give Afghans peace

The US and its allied nations invaded the Taliban regime

Industry hails outcomes of Modi’s US visit

PM Modi arrived in the US on Tuesday for a