The US Treasury unveils its proposal for a global minimum tax on companies. A more moderate proposal than initially assumed, 15% instead of 21%. Although he indicated that 15% should be considered as a minimum level, a starting point that can be raised to “more ambitious” thresholds during multilateral negotiations. Treasury Secretary Janet Yellen will continue talks as part of the G7 finance ministers’ meetings next month.
The American proposal was announced after American negotiators met this week with counterparts from 24 countries, within the OECD framework, on the issue of reforming the taxation system of multinationals. And it appears aimed at trying to facilitate an agreement within the next few months.
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The introduction of a minimum tax aims to avoid what has been defined as harmful competition between states by racing to the bottom in international taxation to attract businesses. Washington would like to tighten the deadlines, reaching an agreement by the summer, and then passing a law within the year. Indeed, the multinational tax is an integral part of its tax plans to raise resources and finance large domestic projects, most notably a $ 2.3 trillion infrastructure revitalization plan.
In a statement, the US Treasury said that “the international tax architecture must be stabilized, the global playing field must be fair, and a climate must be created in which countries work together to maintain their respective tax bases and to ensure that the global tax system is fair and equipped to respond to the needs of the 21st century economy ”. The Treasury has claimed that a global corporate minimum tax would actually stimulate innovation, growth and prosperity in different countries.
However, a multilateral agreement still remains to be reached and there are many problems. A downsizing to 15% is not painless for the White House: the tax would rake in less revenue for the federal treasury than previously desired, and could leave significant benefits to companies with headquarters outside the US – or that move them abroad. . All the more so if the Biden administration raises, as planned, the domestic tax rates on businesses to 28% from the current 21%.