U.S. Treasury Secretary Janet Yellen has called on other countries to join Washington in setting a minimum tax for corporations as a pledge to return U.S. leadership to international policy.
“Together we can use the global minimum tax to ensure that the global economy thrives and innovates, grows and prospers based on the taxation areas of multinational corporations,” Yellen told the Chicago Council in a statement on Monday.
Yellen’s appeal came on the eve of the spring meeting between the IMF and the World Bank, when the Biden administration focused its economic program on tax evasion and crackdowns on tax havens.
Last week, the White House unveiled plans to invest more than 2 2tn in rebuilding dilapidated infrastructure and increasing clean energy products. It expects to pay for an offer with a High corporate tax rates, Its own global minimum tariff increase and other measures designed to stop profit-transfer across borders due to taxes.
“Competition is much more than the way U.S.-headquartered companies lease against other companies in global integration and acquisition bids,” Yellen said. “It’s about ensuring that governments have a stable tax system that invests in essential public goods and increases revenue enough to respond to the crisis, and that all citizens fairly share the burden of government financing.”
The United States is pushing for a multilateral agreement to impose a digital tax on the OECD this summer, but Yellen’s pitch calls for a broader agreement on corporate taxation around the G20 and other countries.
The former Federal Reserve Chair stressed in his speech that the United States is interested in restoring its economic leadership in the face of global challenges, including the one-sidedness of Donald Trump’s presidency and the fight against epidemics and climate change.
“America never means America alone in the first place. In today’s world, no country can adequately provide a strong and sustainable economy for its people. Over time, the lack of global leadership and engagement weakens our institutions and economy, ”he said.
“The United States needs to have a strong presence in the global market in the level playing field. We will cooperate with partners willing to secure and enforce a rule-based order. “
However, he warned that US economic relations with China were more complicated. “Like our larger relationship with China, our economic relationship with China will be competitive where it should be, allied where it can be and where it should be unfavorable,” he said.