Yellen presses for global minimum tax

Treasury Secretary Janet Yellen on Monday pushed for a global minimum corporate tax rate during her first major speech in her new role, as the Biden administration is seeking to enact an infrastructure plan financed by increasing taxes on corporations.

“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth, and prosperity,” Yellen said in the prepared remarks of her speech, which is being delivered at a virtual event hosted by the Chicago Council on Global Affairs.

“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”

A Treasury official said Monday that the G20 has set a goal to reach a political agreement on international tax issues by July and that the administration is still working toward that goal. The official acknowledged that some countries may not end up signing onto an agreement on a global minimum tax, but said that a number of Biden’s tax proposals are aimed at preventing U.S. companies from shifting their headquarters, assets and jobs to tax havens. LINK