Janet Yellen to call for global minimum tax rate

Janet Yellen will use her first major address as Treasury secretary to argue for a global minimum corporate tax rate, Axios has learned, as she makes the case for President Biden’s plan to raise U.S. corporate taxes to fund his $2 trillion+ infrastructure plan.

Why it matters: Convincing other countries to impose a global minimum tax would reduce the likelihood of companies relocating offshore, as Biden seeks to increase the corporate rate from 21% to 28%.

“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen will say today in a speech to the Chicago Council on Global Affairs, according to an excerpt of her prepared remarks obtained by Axios.

"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."

"We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom."
The big picture: President Trump lowered the U.S. rate from 35% to 21%, arguing that U.S. companies were at a global disadvantage and were being incentivized to relocate offshore.

The average corporate rate in the G7 is 24%, with some nine countries recently lowering their corporate rate, according to the Tax Foundation, a conservative tax group.
Biden’s plan would also raise the international minimum rate for foreign profits from U.S. companies from 10.5% to 21%, which would still be lower than the 28% domestic corporate rate.

https://www.axios.com/janet-yellen-global-minimum-tax-rate-51c7395b-e46a-4a5c-b18b-bdcf5d8bd352.html?fbclid=IwAR37qXE_AFI_umAjV7F61ZS2Nf648D8e3rjjTLxKxm45gD2mfjtB--Ajp_Y




So now the Biden administration wants to raise our corporate tax rate back to to one of the highest in the world. That's our problem, as we elected him. But they know that corporations will run to Europe to get lower levels of taxation.

Building walls to keep people in hasn't been very popular in the past 100 years. Now Yellen will use her clout to get other countries to raise their corporate taxes, to make them less appealing to American companies.

I hope Europe and the UK tell her to go fuck herself.

For the record, the UK tax rate is 19% compared to our current rate of 21% and proposed rate of 28%.

Yellen's plan would be twist your arm to raise your corporate rate to be more competitive with ours.

I like it...the people are entitled to the action.

Original Quill wrote:I like it...the people are entitled to the action.

What people are you talking about Doc?

And the rate in Ireland is 12.5%.

At least until Janet Yellen gets her way.

Who are these countries to tax their corporations less than the US?

The problem with eye-wateringly high and punitive corporation or income tax rates is that those who have to pay them tend to be sufficiently wealthy to employ tax advisors, lawyers and accountants with far greater skills than the government bean counting and paper clip shuffling civil servants whose job is to enforce and collect them.

Fred Moletrousers wrote:The problem with eye-wateringly high and punitive corporation or income tax rates is that those who have to pay them tend to be sufficiently wealthy to employ tax advisors, lawyers and accountants with far greater skills than the government bean counting and paper clip shuffling civil servants whose job is to enforce and collect them.

It also drives corporations off shore. Thats why Yellen/Biden is doing this. They don't want other countries being able to steal our corporations by taxing significantly less.