Here is the Biden-Yellen plan on world taxation
Yellen proposed a global minimum tax rate for businesses. All the details in the New York Times in-depth analysis
Treasury Secretary Janet Yellen came out on Monday in favor of a global minimum tax, kicking off the Biden administration's effort to help increase U.S. revenue and prevent companies from shifting profits overseas to evade taxes.
Yellen, in a speech to the Chicago Council on Global Affairs, called for global coordination on an international tax rate that would apply to multinationals regardless of where they are based. Such a global tax could help prevent the "race to the bottom" that is ongoing, said Yellen, referring to countries trying to outdo each other by reducing tax rates to attract business – reports the New York Times .
His remarks came as the White House and Democrats in Congress begin looking for ways to pay for President Biden's vast infrastructure plan to rebuild America's roads, bridges, water systems, and power grid.
“Competitiveness isn't just about how US-based companies compare to other companies in global M&A offerings,” Yellen said. "It's about making sure governments have stable tax systems that collect enough revenue to invest in essential public goods and respond to crises, and that all citizens share the burden of government funding equally."
Senator Ron Wyden, the Oregon Democrat in charge of writing the tax legislation, will publish a new plan on Monday to review how the United States taxes multinational corporations. In addition to increasing revenue, the proposal, co-authored by Senator Sherrod Brown of Ohio and Senator Mark Warner of Virginia, seeks to discourage companies from shifting profits and jobs to low-tax countries to avoid paying taxes in America. It also creates new incentives through for companies to invest in US research and manufacturing.
The speech represented Yellen's broadest comments since taking office as Secretary of the Treasury, and underscored the scale of the challenge ahead.
“Over the past four years, we've seen firsthand what happens when America pulls back from the global stage,” Yellen said. "America first of all must never mean only America".
Yellen also highlighted her priorities for fighting climate change and reducing global poverty and stressed the importance of the United States helping to lead the world out of the crisis caused by the pandemic. Yellen urged countries not to withdraw fiscal support too soon and warned against growing global imbalances if some countries withdraw before the crisis is over.
The slow pace of vaccine distribution around the world is also a concern for Ms. Yellen, who complained that many developing and middle-income countries have been unable to invest in robust vaccination launches, which could harm the global economy.
"The result will likely be a deeper and more lasting crisis, with growing debt problems, deeper poverty and growing inequality," Yellen said, estimating that up to 150 million people could be pushed into extreme poverty this year. . "This would be a profound economic tragedy for those countries, which we should be concerned about."
In a sharp break with former President Donald J. Trump's administration, Ms. Yellen stressed the importance of the United States to work closely with its allies, noting that the fortunes of countries around the world are intertwined.
The overhaul of the international tax system is a big part of this. Corporate tax rates have been declining around the world in recent years. Under the Trump administration, the rate in the United States was cut from 35% to 21%. Mr. Biden wants to raise that rate to 28 percent and raise the minimum international tax rate that American companies pay on their overseas profits to 21 percent.
The Organization for Economic Co-operation and Development, in coordination with the United States, worked to develop a new international tax architecture that would include a global minimum tax rate for multinational corporations as part of its effort to reduce the shift in profits. and the erosion of the tax base.
Ms. Yellen said she is working with her counterparts in the Group of 20 Advanced Countries on changes to the global tax system that will help prevent businesses from shifting profits to low-tax jurisdictions.
"President Biden's proposals announced last week call for bold internal action, including raising the US minimum tax rate, and renewed international commitment, recognizing that it is important to work with other countries to end the pressures of the United States. tax competition and the erosion of the corporate tax base, ”Yellen said. "We are working with the G20 nations to agree on a global minimum corporate tax rate that can stop the race to the bottom."
(Extract from the press review of Eprcomunicazione )
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/yellen-aliquota-fiscale-minima-globale/ on Sat, 10 Apr 2021 06:10:22 +0000.