Corporate Tax

How corporate corporate tax charges are “worse”: NTU Govt VP

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Janet Yellen calls for a global minimum corporate tax rate

The U.S. Treasury Secretary’s comments come as Republicans and some Democrats pushed back Janet Yellen on Joe Biden’s $ 2.3 billion infrastructure bill in August 2019. Photo: Andrew Harnik / AP Treasury Secretary Janet Yellen advocated a minimum global corporate tax rate on Monday The Biden government is against its plans to raise interest rates for US corporations. Yellen’s comments come as Republicans and some Democrats pushed back Joe Biden’s proposed $ 2.3 billion infrastructure investment bill. The bill would be funded in part by raising tax rates on U.S. businesses and closing gaps that allow domestic and overseas businesses to benefit from lower taxes overseas. “Competitiveness is about more than how US-based companies hold up against other companies in global merger and acquisition bids,” Yellen said in a statement to the Chicago Council on Global Affairs. “The point is to ensure that governments have stable tax systems that generate sufficient income to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of funding government.” The Organization for Economic Co-operation and Development (OECD) has been working on new cross-border tax rules that would include a global minimum tax rate for multinational companies. Yellen’s comments are a marked departure from the isolationism exhibited under the Trump administration, and the Treasury Secretary underscored the need for international cooperation. “For the past four years we’ve seen firsthand what happens when America steps back from the global stage,” said Yellen. “‘America first’ can never mean ‘America alone’.” Biden’s plans would reverse some of Trump’s major tax cuts, raise the corporate tax rate from 21% to 28%, and increase minimum taxes on foreign income for US companies, while making it more difficult for foreign-owned companies with US operations to generate profits relocate low-tax countries. “President Biden’s proposals, announced last week, call for bold domestic action, including raising the US minimum tax rate and renewed international engagement, and recognize the importance of working with other countries to address the pressures of tax competition and to end the erosion of the corporate tax base. Yellen said. “We are working with the G20 countries to agree a global minimum tax rate for companies that can stop the race to the bottom.”

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