“We are working with the Group of 20 (G20) countries to agree on a global minimum corporate tax rate that can prevent competition to the bottom. We can jointly use the global minimum tax to ensure that the global economy flourishes in a more level playing field. Taxes stimulate innovation, growth and prosperity,” Yellen said in a speech at the Chicago Council of Global Affairs.
In her speech, she said: “Competitiveness is not just how companies based in the US can compete with other companies in global M&A bidding.” This was her first important speech as the Secretary of the Treasury.
“This is to ensure that the government has a stable tax system to raise enough income to invest in basic public goods and respond to crises, and to make all citizens fairly bear the burden of raising funds for the government.”
The plan will also increase the corporate income tax rate from 21% to 28%. Before former President Donald Trump and Congressional Republicans cut taxes in 2017, the tax rate was as high as 35%.
This story has been updated.