The US proposal would also end OTT exemptions in Europe, where states such as Ireland, Hungary and Cyprus are below this limit. Not to mention the long list of tax havens.
The U.S. is putting pressure on G20 partners to impose a global minimum tax on corporations. Attack by two multinational companies (first BLUNDER) Expertise in tax evasion in tax haven states.
G20, appeal to other states: “Global Minimum Tax to Stimulate Innovation, Growth and Prosperity”
The U.S. Treasury Secretary appealed. Janet Yellen.
“The global minimum tax can be used to ensure that the global economy thrives on the ideal conditions of corporate tax relief and stimulates innovation, growth and prosperity.” Yellen told Ali Chicago Council on Global Affairs Yesterday.
Beyond digital taxation
The United States is already seeking a multifaceted agreement on the introduction of digital taxation.OECD Over the summer, however, Yellen’s move is a broader agreement on corporate tax, which includes the G20 and other countries.
The international minimum rate is about 21%?
“We are working with the G20 countries to ratify the minimum corporate tax rate, which could end the 30-year run.” Yellen pointed out how “Competition is not a matter of mergers and acquisitions, but to ensure that governments have a sustainable tax system that can generate the revenue needed to invest in the public good and in times of crisis.”
The goal is to raise the international minimum rate to about 21%, which has been expanded to include as many states as possible.
With Biden on Corporate Taxes
Yellen accepts President Biden’s line, which aims to raise the U.S. corporate tax rate from 21 to 28 percent (Trump reduced it from 35 to 21 percent), funding a portion of the $ 1,900 billion U.S. employment plan.
“The competition is whether governments have a fixed tax system“
The U.S. Treasury Secretary sets a new principle. International competition is now greater than the ability of US-based companies to keep pace with other companies in mergers or acquisitions. Competition is about whether governments have a sustainable tax system so that they can invest in the public good and recoup the resources they need to respond effectively to crises.“, Including those with health care.
“For the past four years “, The Trump administration has recalled Yellen“We have seen firsthand what will happen when the United States shifts from the global stage. America should never mean America alone in the first place. Because in today’s world, no country alone can provide a strong and sustainable economy for its people. Over time, the lack of global leadership and commitment weakens our institutions and our economy. ”
Of the top 500 companies listed by Fortune in 2018, the top 91 companies paid zero taxes to federal treasuries.
According to a study reviewed by Yellen and White House economists, the best 91 companies out of the top 500 companies listed by “Fortune” in 2018 paid zero taxes to the federal treasury. Biden expressed his outrage at multinational companies such as Amazon, which moved to tax bases or used loopholes and vowed to end it by not paying taxes or levies. But there are also companies like Delta, Chevron, Netflix, Starbucks, Halliburton.
Specific US solution to avoid OTTs in Europe
The U.S. proposal to impose a global minimum tax on multinational corporations would be the best solution to end the exclusion of OTTs in Europe, with states such as Ireland, Hungary and Cyprus below this limit. Not to mention the long list of tax havens. These will also be short-lived if US Treasury Secretary Janet Yellen’s proposal is to be approved in the next G20.
In the next G20 digital tax approval?
This would be a significant step forward if the G20 digital tax is approved. Prime Minister Mario Draghi told the Senate last month:
“I believe this is a viable goal, thanks to our cooperation with the new US government, so we want to dedicate ourselves to this front,” he said. In other words, we see the availability to a certain extent from the governance of a country, which was previously completely closed about the possibility of imposing a digital tax. The Italian presidency of the G20 is the perfect opportunity to do so. “ Prime Minister Draghi concluded.
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