WASHINGTON, Apr 7 (Reuters) – U.S. Treasury Secretary Janet Yellen on Wednesday unveiled a corporate tax increase plan tied to President Joe Biden’s $ 2.3 trillion infrastructure investments that she said, they would raise about $ 2.5 trillion in 15 years.
Yellen suggested a substantial overhaul of the country’s corporate tax system, including establishing a minimum tax rate for dozens of companies that do not pay corporate taxes in the United States and strengthening the audit and enforcement of tax laws.
“The correct approach to corporate taxation requires keeping the United States competitive while protecting the corporate tax base,” said a Treasury report issued before the plan was unveiled. “Today, we failed on both counts.”
Yellen reviewed decades of U.S. economic history in a call with reporters before the plan was published, pointing to the decline in the company’s profit share toward wages, how firms have accumulated more profits in tax havens in abroad and how corporate auditing has decreased.
Suggestions from the Treasury include setting a global minimum tax rate of about 21%; the revocation of “export preferences”; and establish a “minimum accounting tax” of 15% paid by all large companies.
(Reporting by David Lawder and David Shepardson)