05 april 2021
19:17
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US Treasury Secretary Janet Yellen advocates a global minimum tax for multinationals. ‘If we manage to stop the race to the bottom, the economy can flourish and stimulate innovation, growth and prosperity.’
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Janet Yellen’s speech
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‘Over the past four years, we have been able to see from the front row what will happen if the US withdraws from the world stage. America first should never be synonymous with America alone. A country alone cannot guarantee its people a strong and sustainable economy. Over time, a lack of global leadership and engagement results in fragile institutions and a fragile economy ‘, said the former president of the US central bank at an event organized by the Chicago Council on Global Affairs.
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The essence
- US Treasury Secretary Janet Yellen has set out her international priorities for the first time.
- She made a plea for the introduction of a global minimum tax for multinationals.
- She also pushed the fight against climate change and global poverty and the search for a way out of the corona crisis to the fore.
- In all cases, Yellen is in favor of a multilateral approach.
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Race to the bottom
To prove to the international community that the US is serious about the multilateral approach, Yellen intends to lead the fight for a global minimum tax on multinationals. ‘We have witnessed one for thirty years race to the bottom around the corporate tax, ”noted the US secretary.
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She alluded to the race that has unfolded between countries in recent decades to attract as many large companies as possible with the lowest possible tax rate. Washington has long been a thorn in the side of American multinationals settling in, say, Ireland or the Netherlands, because the tax regime there is a lot more interesting.
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“Competitiveness is about more than how companies with headquarters in the US perform against other companies worldwide. It’s about ensuring that governments have stable tax systems that generate enough revenue to invest in essential public utilities and respond to crises, and it’s about all citizens taking a fair share of government funding, ” said Yellen.
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America first should never be synonymous with America alone.
Janet Yellen
United States Secretary of the Treasury
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That is why the American minister is teaming up with her colleagues from the G20, the group of the most important industrial and growth countries. ‘Together we are working on a worldwide minimum tax for multinationals that use the race to the bottom can bring it to a halt. If we succeed in this, we can guarantee that the global economy thrives in a more level tax playing field and that it stimulates innovation, growth and prosperity. ‘
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Infrastructuurplan
Competitiveness is about more than how companies with headquarters in the US perform against other companies worldwide.
Janet Yellen
United States Secretary of the Treasury
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To finance the renovation of bridges, roads, water systems and ports and airports and investments in green energy and technology, Biden wants to increase corporate tax from 21 to 28 percent. He also plans to make US companies pay a 21 percent tax on foreign profits, up from 13 percent now.
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Yellen put forward three more priorities: the fight against climate change, the fight against poverty and the search for a way out of the crisis caused by the corona pandemic. She called on governments worldwide not to put away their aid plans too quickly.
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