USA, Yellen: we need a global minimum tax on companies

A worldwide minimum corporate tax to prevent them from moving for tax reasons This is the proposal of the US Treasury Secretary Janet Yellen. “We are working with the G20 countries to agree on a global minimum tax that can stop the race to the bottom,” Yellen said in anticipation of a speech he will give later in the day at the Chicago Council on Global Affairs. According to Yellen, creating a global minimum tax will help bring stability and encourage competition. A global minimum corporate tax could help Joe Biden’s administration increase tax revenues to fund the $ 2.250 billion infrastructure plan and prevent companies from fleeing overseas. In fact, the White House foresees a tightening of the tax burden for companies in the United States to finance the infrastructure plan, canceling the tax cut launched by Donald Trump. And higher taxes in the US could push companies to move to countries with lower rates. Hence Yellen’s proposal. Competition isn’t just about how US-based companies perform against other companies, Yellen explains. Competition “is also about making sure governments have a stable tax system that can raise enough revenue to invest in the public good and respond to crises,” Yellen notes.