Treasury Secretary Janet Yellen (Janet Yellen) on Monday will call for a minimum tax rate on global companies to prevent companies from moving to lower tax rates.
According to news confirmed by Axios, Yellen will say at the Chicago Council of Global Affairs meeting this morning: “We are negotiating with the Group of 20 (G-20) countries to reach the lowest global corporate tax rate that can prevent competition.” CNBC.
This remark comes as President Joe Biden hopes to increase the corporate tax rate as a way to pay for the $2 trillion infrastructure improvement program.
According to the government’s proposal, the corporate tax rate will rise from 21
One of the reasons for the Trump administration to reduce corporate tax rates is that US companies are offshore in large numbers or move their residences to countries with lower corporate tax rates, even though most of their business is conducted domestically.
Yellen will say at the meeting that determining the lowest global corporate tax rate will help bring stability and provide a more level playing field for all countries.
According to the Axios report, Yellen would say: “Competitiveness is not only in global mergers and acquisitions bidding. Companies based in the United States can compete with other companies.” “This is to ensure that the government has a stable tax system to increase sufficient revenue. To invest in necessary public goods and respond to crises, and make all citizens fairly bear the burden of raising funds for the government.”
Companies are also incentivized to hide their income overseas, and Trump’s tax cuts are also resolved by increasing repatriation incentives.
The Biden plan calls for an increase in offshore interest rates from 10.5% to 21%.