The United States will promote a global agreement on a corporate income tax at the G20, Treasury Secretary Janet Yellen said on Monday, a week after the presentation of an infrastructure plan financed by increases in corporate taxes in her country.
“Together we can use this global minimum tax to ensure that the economy thrives on the basis of a more level playing field for multinational companies, and that innovation, growth and prosperity are fueled,” Yellen said in a speech. at the Council on Global Affairs think tank in Chicago.
Just days after the Joe Biden administration announced last week that it wants to raise corporate income tax to fund a gigantic infrastructure plan to create jobs, Yellen advocated an international effort to end a ” race “to bring this tax to a” minimum “in search of gaining competitiveness.
For the Secretary of the Treasury, it is necessary to ensure that governments have fair tax systems that raise enough revenue to invest in essential public goods and can respond to crises. He also defended that all citizens share the “burden” of financing the government.
According to a senior Treasury official on condition of anonymity, the G20 expects to have a proposal on this issue by July. The source indicated that the US government would need to change laws to carry out this tax reform.