Goal is prevention of foreign tax havens.
In her first major address as Secretary of the Treasury, Janet Yellen on Monday urged a global minimum tax on corporations in a push to assert U.S. leadership in ongoing international tax negotiations. The goal is to prevent companies from relocating where they find lower taxes.
The treasury secretary said, “Together we can use a global minimum tax to make sure the global company thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth and prosperity.”
Since taking office in January, Secretary Yellen has stressed the importance of multicountry alliances and she made the case again in her speech delivered online to the Chicago Council on Global Affairs. She promotes finding agreement on taxes and other fiscal policies, a stark contrast to the previous administration’s aversion to multilateralism in economics.
Secretary Yellen said that working collaboratively across borders is essential for economic stability, particularly as the world begins recovering from the coronavirus pandemic. The U.S. could use its own tax legislation to prevent companies from shifting profits or residency to tax haven countries, and she said she would encourage other major countries to do the same.
The treasury secretary also said she would use her participation in International Monetary Fund and World Bank annual meetings this week to advance discussions on climate change, improve vaccine access, and encourage countries to support a strong global recovery.
As the Lord Leads, Pray with Us…
- For U.S. governing officials to seek God’s wisdom with regard to a global corporate minimum tax.
- For discernment for Secretary Yellen as she meets this week with the International Monetary Fund and World Bank, and the decisions those groups would be making.
Sources: Politico, Reuters
