Yellen pushes countries to ‘give up the game’ on corporate taxes – MENAFN.COM


(MENAFN - Gulf Times) Raising US corporate taxes could spur similar moves by other countries and hasten the establishment of a global minimum corporate tax, US Treasury Secretary Janet Yellen said on Wednesday. US President Joe Biden last week unveiled a $2tn jobs and infrastructure plan paid for in part by an increase in the domestic corporate tax rate, and by sweeping up corporate profits stashed overseas. A unilateral tax hike could put the United States at a disadvantage with other nations with lower rates, but Yellen predicted the proposed increase would encourage other countries to end the competition over providing corporations the most favourable tax climate. 'We're not only ending America's participation in the race to the bottom.

The tax plan incentivises the whole world to give up the game, Yellen told reporters. 'Destructive tax competition will only end when enough major economies stop undercutting one another and agree to a global minimum tax, and this proposal includes some powerful incentives for nations to do that. Yellen earlier this week announced that Washington would push the G20 for an agreement on a global minimum corporate tax to stem the erosion of government revenues, and the bloc is expected to more...