Janet Yellen, President Joe Biden’s Treasury Secretary, expressed the Biden administration’s support for “global minimum corporate tax,” the Associated Press reported.
According to Yellen, the Biden administration would work with the Group of Twenty, a conglomeration of twenty so-called “advanced” nations, to enforce the proposed global taxation.
The Treasury Secretary, who has a zeal for economic management, said that she wants to ensure that foreign nations also have strict tax policies.
“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said in a virtual speech on Monday. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods.”
“It is important to work with other countries to end the pressures of tax competition,” she added.
The Biden administration has proposed a corporate tax hike to 28%. The current corporate tax rate is 21%.
On Monday, Biden said that he is “not at all concerned” about higher corporate taxes leading to corporate outsourcing.
Nevertheless, Yellen’s proposed global corporate tax looks to prevent that very thing.
Yellen’s tax proposal comes amid increasing domestic expenditures, such as the $1.9 Trillion “COVID relief” package last month.
Despite a growing deficit and domestic poverty created by the lockdowns, the proposal looks to direct U.S. tax dollars to address fraudulent political issues, like climate change.
She also argued that “significant resources will go to the countries most in need.”
As a result, Americans will continue to pay for foreign aid in higher prices and corporate offshoring.
Yellen also seeks to direct the global economy away from fossil fuels and toward what she called “climate-aligned investments” after the U.S. has remained “sitting on the sidelines for four years.”
