End in Sight for Tax Havens: US Now Before Minimum Tax for Multinationals

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A global minimum tax for multinationals is getting closer: new US Treasury Secretary Janet Yellen favours it because the Biden government needs money.

 

The previous US administration opposed elements of a plan to introduce an international corporate tax floor. The OECD, the club of rich industrial nations, is trying to agree on this with some 140 countries.

The US has changed its mind under Joe Biden. His finance minister, Janet Yellen, is now openly advocating a global minimum rate. She sees it as a means to stop the “devastating downward spiral” in tax rates.

A deal would amount to a kind of Paris Climate Agreement, but for taxes, described the American economist and Nobel Prize winner Joseph Stiglitz. He is firmly in favour of a minimum tax for international companies.

“Ending corporate tax avoidance is one of the best ways to tackle unbridled wealth and income inequality,” economist Stiglitz wrote with a group of colleagues in an open letter to Biden.

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