On Monday, Janet Yellen, Treasury Secretary said that the US is working towards a global minimum tax with the other G20 nations for multinational companies. It forms a part of the US president Biden’s plan regarding corporate tax which involves increasing the rate of corporate tax in the US and introducing the minimum amount of taxes on the foreign earnings of the US companies.
Yellen’s Views On Global Minimum Tax
Yellen also stated that if an agreement on global corporate tax is reached the world would not have to go on a thirty-year race towards the bottom. Yellen explained that with this agreement, the economy of the world will regain its footing regarding the taxation incurred on multinational corporations. This will further spur growth, prosperity, and innovation, she added.
Her remarks came while she was delivering a speech before the Global Affairs Council of Chicago as the IMF and the group of World Bank ventured on another new series of meetings on Monday. She is participating for the very first time in these meetings being the Treasury Secretary. With the administration of Biden calling for the global minimum tax, an official of the Treasury was unable to provide information about the minimum target that the US is trying to reach with the major economies. However, the G20 aims to conclude their agreement anytime sooner than July.
Yellen added that their economic relationship concerning China will vary from adversarial to collaborative to competitive depending on the area and the changing times. During her speech on Monday Yellen also highlighted how America is becoming the strongest nation by engaging with the global world because of the shift in approach towards the global scale by the current administration.