Updated April 6th, 2021 at 09:42 IST
US Treasury Secretary Janet Yellen calls for minimum global corporate income tax
US Treasury Secretary Janet Yellen in a virtual speech in Chicago Council on Global Affairs has urged the adoption of a minimum global corporate income tax.
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United States Treasury Secretary Janet Yellen on March 5 has called for the adoption of a minimum global corporate income tax that would benefit the US economy. She said that the Biden administration would work with other advanced economies. She said that for the last thirty years, countries have decreased corporate tax rates to attract multinational business.
Janet Yellen addresses Chicago Council
Janet Yellen in a virtual speech to the Chicago Council on Global Affairs said that governments ensure a stable tax system so that sufficient revenue is generated. The revenue will be used to invest in essential public goods. She said that countries should work together to end the pressure of tax competition and corporate tax erosion.
Today at the @ChicagoCouncil, I presented three key objectives that will guide our economic engagement with the rest of the world.
— Secretary Janet Yellen (@SecYellen)
The first objective is a stable and growing world economy that benefits the U.S. economy.
We must also get out of the 30 year race to the bottom on corporate tax rates.
— Secretary Janet Yellen (@SecYellen)
It's about making sure gov'ts have stable tax systems that raise sufficient revenue to invest in essential public goods & respond to crises, & all citizens fairly share the burden of financing gov't.
Yellen has downplayed the potential for the Biden administration’s domestic agenda, which also includes a $1.9 trillion COVID relief package approved last month, to spur higher inflation. Yellen also added that the United States will work to fight climate change at home and across the globe. She said that US Treasury will work to "promote the flow of capital toward climate aligned investments and away from carbon-investive investments."
I strongly doubt that it’s going to cause inflationary pressures, she said.
The problem for a very long time has been inflation that’s too low, not inflation that’s too high, she added
Yellen said that many developing nations are lagging in vaccinating their populations. They have also experienced harsh economic consequences due to the pandemic. She said that around 150 million people worldwide will fall into extreme poverty this year. She said that the Biden administration supports the creation of The $650 billion in new lending capacity at the IMF to address such issues. Yellen acknowledged that the additional credit would be distributed to each IMF member, but argued that significant resources will go to the poorest countries who need it the most. Nations can also donate some of their funds to the hardest-hit countries.
The second objective is to fight poverty & promote a more inclusive global economy that aligns w/ our values.
— Secretary Janet Yellen (@SecYellen)
Current crises will push almost 150 mil into extreme poverty this year, reversing trends of the last 2 decades, w/ women, youth, low-skilled & informal workers hard hit.
(Inputs and Image from The Associated Press)
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Published April 6th, 2021 at 05:29 IST