The US administration faces a challenge of discouraging US companies from moving jobs and production overseas, since in addition to the 28% corporate rate tax raise, Biden plans to enact a 15% minimum tax on the book income of the largest corporations. Biden made the comments on Monday while talking to reporters on the South lawns of the White House as he arrived from his weekend stay at Camp David.
With its much higher proposed rate for United States companies, Washington will be eager to ensure that the rate agreed internationally is as close as possible to its 21 per cent rate. "Everybody around the world is investing billions and billions of dollars in infrastructure, and we're going to do it here", he added.
US Treasury Secretary Janet Yellen outlined the case for a harmonised corporate tax rate across the world's major economies, part of an effort to restore global leadership and credibility with US allies following the unilateralist approach of the Trump era.
"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", she said.
"Competitiveness is about more than how US-headquartered companies fare against other companies in global merger-and-acquisition bids", Yellen will say in a speech to the Chicago Council on Global Affairs.
Tensions between the U.S. and other advanced economies have surged in the past few years over how profits generated by Silicon Valley's tech firms are taxed, with a solution now being brokered by the OECD think tank.
In her speech, Yellen said the measure would stop what she said was a "30-year race to the bottom", where corporations are searching for more favourable conditions in other countries, making global economies compete by gradually lowering their corporate tax rates, making the funding of government projects considerably more hard.
Le Maire said France also hoped to make progress with Yellen on a global digital tax agreement this summer.
"America first must never mean America alone", she said yesterday in a conference ahead of the spring meetings of the International Monetary Fund and World Bank. "In fact, it's lower than it was from World War Two until 2017".
The most evident immediate example is the need to address global health risks.
She said government spending will still be needed to ensure countries recover from the damage inflicted by the Covid-19 pandemic.