US Treasury Secretary Janet Yellen has called for a global minimum corporate tax rate for companies that work internationally.
United States is working with G20 nations to agree to a global minimum corporate tax rate that can stop the downstream said the Secretary to the Chicago Council on Global Affairs.
“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations and spurs innovation, growth, and prosperity,” she said.
Former US President Donald Trump and his administration had rejected such ideas, fearing that it would put US corporations that work internationally in a worse position.
Trump was also against the so called “digital tax” for internet companies such as Amazon, Google or Apple. The idea has primarily gained traction in Europe and Australia.
Some critics in EU have long held that US corporations pay too little tax in the markets they operate.
The new US administration of President Joe Biden is also open to this and is seeking a compromise solution within the framework of the negotiations of the Organization for Economic Co-operation and Development (OECD).