US Treasury Sec Yellen Proposes 15 Percent Global Minimum Tax on Companies
Posted on 05/20/2021
United States Secretary of the Treasury Yellen proposed that countries agree to a 15% global minimum corporate tax in international negotiations. The Organization for Economic Cooperation and Development (OECD), which is heavily influenced by European governments, floated a 12.5% global minimum corporate tax. Ireland, with a 12.5% corporate rate and key profit generator for the island, was not happy about the 21% rate that the Biden administration had previously proposed for global income earned by U.S. companies.
“It is imperative to work multilaterally to end the pressures of corporate tax competition and corporate tax base erosion,” the Treasury Department said in a statement Thursday. “Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.”
Countries that benefit from Yellen’s proposal like France endorsed the move, while other nations that host multinationals have reservations.
In the U.S., President Biden wants to raise the corporate tax rate to 28%, from 21%. The idea has been universally panned by Republicans and many business groups.
