U.S. Secretary of the Treasury Yellen is scheduled to speak at the Chicago Council on Global Affairs on May 5, her first major talk since taking office; the speech obtained by the foreign media shows that Yellen will call for the implementation of the world’s lowest corporate tax system to enhance corporate competitiveness, raise revenue for governments, and avoid vicious competition.
U.S. media Axios quoted the content of the speech, Yellen this demand, will provide a reasonable basis for President Biden to raise corporate taxes to raise funds to finance more than 2 trillion dollars of infrastructure programs.
According to the report, Yellen will explain why other countries should be persuaded to adopt a global minimum tax system because it would reduce the likelihood of businesses moving offshore.
The speech states, “Competitiveness is not just about how U.S.-based companies compete with others in mergers and acquisitions, but about ensuring that governments create stable tax systems that can raise sufficient revenue to invest indispensable public funds and respond to crises, and that all citizens share fairly in the financial burden of government.”
Yellen will also say, “We are negotiating with G20 countries for a global minimum corporate tax system that can end unhealthy competition.”
Biden intends to raise the corporate tax from 21 percent to 28 percent, and is also prepared to raise the tax rate on overseas profits of U.S. companies from 10.5 percent to 21 percent. Biden has asked the head of the Treasury Department and other ministries to explain these plans to the public, while Yellen’s task is to explain the policy to the international community, and will also set the tone for the International Monetary Fund (IMF) and the World Bank (WB) annual meeting to be held this week.
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