U.S. Treasury Secretary Janet Yellen said on Monday that the U.S. will require the G20 countries to reach an agreement on increasing corporate taxes to prevent global taxation from deteriorating.
A few days after President Joe Biden announced plans to increase US corporate taxes to fund huge infrastructure projects, Yellen said that international agreements are needed to prevent “bottom line races.”
In a speech in Chicago, she said: “We can use the world’s lowest tax rate together to ensure that the global economy can run smoothly when taxing multinational companies.”
She said that globalization and a closely connected economy have led to a 30-year low race, with countries competing for the lowest tax rate to attract investment.
She believes that in order to ensure that companies and the country remain competitive, it is necessary to establish a stable tax system, provide sufficient taxation for basic public services, and respond to crises.
In order to provide funding for the comprehensive package of infrastructure and job creation, Biden proposed to increase the US corporate tax to 28% and the minimum tax for multinational companies to 21%.
Yellen’s speeches before the Spring Meeting of the World Bank and the International Monetary Fund and the G20 Finance Ministers’ Meeting were Biden’s sketches for restoring the international cooperation plan blocked by former President Donald. trump card.