On Monday, Secretary Janet Yellen was pushing for a global minimum tax rate as she made President Biden's plan to increase levies on U.S. companies in order to fund his$ 2.25 trillion spending proposal.
In a speech to the Chicago Council on Global Affairs, Yellen called for global coordination on taxes paid by multinational corporations- part of an effort to crack down on companies that relocate in search of lower rates. Yellen's comments were first reported by Axios, Competitiveness is about more than how global companies compete with other companies in the U.S. merger and acquisition bids, said Yellen.
It is about ensuring that governments have reliable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens share equally the burden of government funding. PLANNED TAX HIKES COULD BE DEMOCRATS '' FOR BIDEN IF PAYMENTS BAKE 2022 Yellen's remarks come as the Biden administration seeks to raise the rate paid by American companies from 21% to 28%, one of the ways the White House plans to pay for the so-called American Jobs Plan, a massive eight-year initiative that will make massive investments in the nation's roads and bridges, as well as transit systems, schools and hospitals.
Biden is also exploring raising the global minimum tax on US corporations from 13% to 21%.
But global rates have been falling in the United States over recent years, including in the U.S.
In 2017, Trump and the GOP elected congress slashed the rate from 35% to 21%.
The highest corporate rate in the G 7 was last reduced for nine countries by the Tax Foundation. GET FOX BUSINESS ON THE GO BY CLICKING HERE We are working with G-20 nations to agree on a minimum corporate tax rate that can stop the race to the bottom, she said. The U.S. Chamber of Commerce and the Business Roundtable are already facing potential headwinds over proposed tax hikes: Both the White House and the Coronavirus Pandemic warned that forcing corporations to pay more in federal taxes would eventually derail the economy's recovery from the crisis.
CLICK HERE TO READ MORE ON FOX BUSINESS Joshua Bolten strongly opposes corporate tax increases as a form of pay-for infrastructure investment, CEO Business Roundtable said in a statement.
Policy makers should avoid creating new barriers to job creation and economic growth, especially during the recovery.
Recent research by the Tax Foundation shows that Biden's plan to reduce corporate taxes would curb GDP by 0.8% and create 159,000 jobs in the country.
It also would reduce the wages of workers by 0.7%, said the nonpartisan organization.