US Treasury Secretary Janet Yellen on Monday called for the world's lowest corporate tax rate to boost tax revenues across countries and prevent multinationals from shifting profits to low-tax areas or avoiding tax liabilities.
Speaking at the Chicago Council on Global Affairs online event, J. Yellen said the US is partnering with the G20 economies to reach agreement on the world's lowest corporate tax rate to ensure fairer taxation of multinationals and promote innovation , the growth and prosperity of the world economy.
Last week, US President Joseph Biden unveiled a new $ 2.25 trillion infrastructure development package. He proposed reforming the corporate tax system to raise funds for infrastructure investment. The President also proposed raising the corporate income tax rate from 21% to 28%.
Analysts note that if the world's largest economies do not reach consensus on a minimum corporate tax rate, then J. Biden's proposal for tax reform will put US multinationals at a disadvantage in competing with companies from other economies.
J. Yellen on Monday stressed that the United States must strengthen economic engagement with other countries and regions of the world and make efforts to achieve three main goals: to promote stable global economic growth, to advance the fight against poverty and build a more inclusive global economy, to work together to meet global challenges in the field of health care, disruptive technology and climate change.