Yellen calls for minimum global corporate income tax

[Dashinka 24,732]

Curious how Ms. Yellen expects this to actually be accomplished.  Will she propose that that UN levy this tax?  I really don't see a lot of countries adopting this due to the competitive nature of attracting corporations, but it is interesting that Ms. Yellen seems to telegraph that a rise in US corporate tax rates may be detrimental to keeping corporations in the US.

 

Yellen calls for minimum global corporate income tax

 

WASHINGTON • U.S. Treasury Secretary Janet Yellen on Monday urged the adoption of a minimum global corporate income tax, an effort to offset any disadvantages that might arise from the Biden administration’s proposed increase in the U.S. corporate tax rate.

Citing a “thirty-year race to the bottom” in which countries have slashed corporate tax rates in an effort to attract multinational businesses, Yellen said the Biden administration would work with other advanced economies in the Group of 20 to set a minimum.

“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said in a virtual speech to the Chicago Council on Global Affairs. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods.”

 

https://www.djournal.com/ap/business/yellen-calls-for-minimum-global-corporate-income-tax/article_5d4797af-621a-5037-9f6b-7382c67d8d82.html

 

[TBoneTX 45,918]

8 hours ago, Dashinka said:

Ms. Yellen seems to telegraph that a rise in US corporate tax rates may be detrimental to keeping corporations in the US.

And, of course, she and her cronies will claim the precise opposite.

[laylalex 7,300]

Not hard to figure out how this might be accomplished, I literally googled the single word "Yellen" and found this AP article which explains.

Quote

 

Yellen’s remarks essentially serve as an endorsement of negotiations that have been underway at the 37-nation Organization for Economic Cooperation and Development for roughly two years, said Alan Auerbach, an economist at the University of California at Berkeley.

Biden’s U.S. corporate tax proposal includes an increase to the U.S. minimum tax that was included in Trump’s tax law, from 10.5% to 21%. One focus of the OECD talks is whether other countries will adopt similar minimums. Biden’s corporate tax measure would also penalize other countries without a minimum corporate tax by more heavily taxing their subsidiaries in the U.S.

Auerbach said that the OECD has helped foster other agreements around issues such as bank secrecy.

“There is precedent for this sort of thing,” Auerbach said. “But this would be a big deal because it would get countries to coordinate their tax systems in ways they haven’t before.”

 

https://apnews.com/article/janet-yellen-minimum-global-corporate-income-tax-0a839a4705566a8b9f8bd5411bfe62d5

 

Note I said "might," not "would," trying to stave off people trying to put words in my mouth. 

[Dashinka 24,732]

15 hours ago, laylalex said:

Not hard to figure out how this might be accomplished, I literally googled the single word "Yellen" and found this AP article which explains.

https://apnews.com/article/janet-yellen-minimum-global-corporate-income-tax-0a839a4705566a8b9f8bd5411bfe62d5

 

Note I said "might," not "would," trying to stave off people trying to put words in my mouth. 

Biden’s corporate tax measure would also penalize other countries without a minimum corporate tax by more heavily taxing their subsidiaries in the U.S.

 

Still not seeing how this would work, as foreign subsidiaries in the US would most likely show little or no profit for tax purposes.  I also really doubt 37 countries will get together and decide to create a minimum tax.  We shall see, but clearly Joe Biden's pronouncement that increasing the US corporate tax rate will have an impact on businesses in the US hence the need for Ms. Yellen's pipe dream plan.