U.S. Treasury Secretary Janet Yellen has proposed a global corporate minimum tax rate to help end tax evasion around the world.
In prepared remarks to the Chicago Council on Global Affairs, Yellen said she would work with G20 countries, the International Monetary Fund (IMF) and World Bank to advance discussions on a global corporate minimum tax to end what she said has been a “30-year race to the bottom on corporate tax rates.”
Yellen said it is important to make sure governments "have stable tax systems that raise sufficient revenues in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government."
The U.S. Treasury has called on the world’s major economies to support the proposed global corporate minimum tax rate to ensure it is effective.
The United States plans to use its own tax legislation to prevent companies from shifting profits or residency to tax haven countries around the world and encourages other major economies to do the same.
U.S. President Joe Biden has proposed raising the corporate tax rate in America to 28% from 21%, partially undoing the previous Trump administration's cut from 35% in its 2017 tax bill. The increase would help the White House pay for its $2.3-trillion U.S. infrastructure investment.
