Yellen Calls for Global Minimum Tax on Corporations
April 9, 2021
On Monday, U.S. Treasury Secretary Janet Yellen delivered a speech to the Chicago Council on Global Affairs calling for significant tax hikes on corporations as a means of paying for President Biden’s proposed $2.3 trillion dollar infrastructure proposal.
In addition to the global minimum tax, the Biden Administration is seeking to raise the corporate income tax from the current 21% to 28% and enact a 21% minimum tax on U.S. companies’ foreign income. According to the Wall Street Journal, if the U.S. raises taxes without being able to enact a global minimum tax, the nation could be put at a disadvantage as foreign-owned businesses operating outside of the U.S. could be largely more profitable than their competitors owned by U.S. companies. The discussion on this topic is just beginning as it’s likely to take most, if not all of the rest of this year, to enact legislation of this magnitude and consequence.