US pushes global adoption of minimum corporate tax

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.

US President Joe Biden unveiled a two-trillion-dollar jobs and infrastructure plan paid for in part by an increase in the 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 a favorable tax climate.

Yellen said, “The tax plan incentivizes the whole world to give up the game.”

The proposal raises the official rate to 28 percent from 21 percent, and increases the minimum tax on businesses to 21 percent, “ending the ability of multinationals to shield income in tax havens from US taxes,” Treasury said.

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