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FX.co ★ Janet Yellen calls for minimum global corporate income tax

Janet Yellen calls for minimum global corporate income tax

Janet Yellen calls for minimum global corporate income tax

To eliminate the problem of tax evasion among global corporations, the US Treasury Department has proposed the adoption of a global minimum corporate tax rate. On the one hand, this idea may look like another attempt by the US to interfere in world affairs. However, this initiative may benefit those countries whose businesses register abroad in order to avoid taxes. Many large companies do this on purpose to cut their tax burdens. As a result, the public budget is lacking huge amounts of money. The US Treasury Department insists that the new corporate tax should be no less than 15%. Moreover, the final rate could go even higher after the discussion with the G20 and the Organization for Economic Cooperation and Development (OECD). Currently, the so-called global corporate tax rate is very low. However, these tax payments are crucial for making critical investments. The US officials are sure that low corporate tax rates significantly undermine the financial state of many countries. Recently, US Treasury Secretary Janet Yellen has announced that the US government aims to raise $2.7 trillion through a combination of new tax policies applied on a local and international scale. Within this tax reform, the corporate income tax will be lifted to 28% from the current 21%. The international part of the tax plan was proposed by Janet Yellen who called on countries all over the world to implement a corporate income tax rate and keep it at a minimum level.


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