The US Treasury Secretary expressed hope on Sunday that the US legislature will adopt the global minimum tax bill, which will allow multinational companies to be taxed.
"I trust that what we have to do to meet the requirements of the minimum tax will be included in the social-welfare package," said Janet Yellen in an interview with American television called ABC.
In 2019, the Organization for Economic Co-operation and Development (OECD) began to develop the framework for global minimum tax regulation. The essence of the agreement agreed in Paris this week is that in the future, governments will apply a uniform corporate tax of 15 percent to foreign multinational companies.
Yellen called the agreement on the global minimum tax, which has been adopted by more than 130 countries, historic. According to the minister, the new tax will prevent certain countries from attracting American businesses by lowering their corporate tax rates, which will ultimately adversely affect American workers.
The agreement provides an opportunity to collect taxes from successful companies, not only from employees, said the minister.
US President Joe Biden's social welfare package, estimated at $3.5 trillion, which includes family, education, health and climate protection measures, was supposed to be voted on last week by the House of Representatives, but it turned out that not only the Republicans, but also the centrist Democrats do not agree with the planned. Last Thursday, Joe Manchin, Democratic Senator of West Virginia, and Kyrsten Sinema, Democratic Senator of Arizona, also indicated that they support the $3.5 trillion package.
The Biden cabinet would finance the bill with one of the largest tax increases in American history. Among other things, the corporate tax rate would be increased from 21 to 28 percent. The corporate tax was reduced from 35 percent to the current level by the administration led by President Donald Trump as part of the 2017 tax law. The leader of the Senate Republicans, Mitch McConnell, said earlier: they will do everything they can to prevent the adoption of a "radical spending package".
Source: demokrata.hu
In our opening image, Janet Yellen is the US Treasury Secretary. Photo: asiafinancial.com
