Some tax experts say Canada can benefit from the US government's decision to join a campaign for the creation of a global minimum corporate tax rate for the world's major economies.
In a speech to the Chicago Council on Global Affairs on Monday, Yellen is expected to push for all other industrialized nations to raise their corporate tax rates to a minimum standard, as well, to ensure economic "competitiveness" worldwide.
Treasury Secretary Janet Yellen called for a global minimum corporate tax rate on Monday, a pitch that comes as the Biden administration begins to sell its roughly $2 trillion infrastructure and jobs proposal that would raise USA corporate taxes to fund the massive plan.
Her more cooperative approach marks a sharp contrast to the "America First" approach of her Trump administration predecessor, Steven Mnuchin. "It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods".
The tax changes include raising the country's corporate tax rate from 21% to 28%, a move that conservatives and moderate congressional Democrats have argued could be devastating for the American middle class.
Yellen also has dropped https://www.reuters.com/article/us-g20-usa-oecd/u-s-drops-safe-harbor-demand-raising-hopes-for-global-tax-deal-idUSKBN2AQ2E6 a key Mnuchin demand from worldwide tax negotiations - a provision that would allow large us technology companies opt out of any new rules on taxation of digital services.
Without a global minimum, the United States would again be at a disadvantage to a number of other major economies with lower tax rates, tax experts say, with US commitment helping to jump start negotiations for a tax deal among a number of major economies.
Yellen said in her remarks that while advanced economies had successfully supported their economies through the COVID-19 pandemic, it was too early to declare victory, and more support for low income countries to gain access to vaccines was needed.