Yellen’s plans to close the multinational tax avoidance loophole follows similar remarks made by President Joe Biden last week.
United States Secretary Treasury Janet Yellen has followed in the footsteps of President Joe Biden, calling for the need to close the country’s multinational tax avoidance loophole. In a speech to the Chicago Council on Global Affairs on Monday, Yellen cited that following a « thirty-year race to the bottom » on slashing the country’s corporate tax rates, the Biden administration will work with other G20 countries to agree to set a minimum rate. « Competitiveness is about more than how US-headquartered companies fare against other companies in global merger and acquisition bids, » Yellen said. « It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government. » She continued, saying that setting a minimum tax rate will ensure there is a « more level playing field in the taxation of multinational corporations ».
