USA: Financial pressure continues on minimum corporate tax

USA: Financial pressure continues on minimum corporate tax

The pressure on the U.S.’s lowest global corporate tax continues. Suggestion put forward by the Secretary of Stars and Stripes in the Treasury Janet Yellen, On April 5th. Because it has to do with the protection of American interests. It does not want to exclude the US from global tax competition. Biden He is studying raising the national corporate tax rate from 24 to 28 percent. This situation will force the US to talk financially. At the OECD level, it is, in fact, one of the highest taxing member states.

The tax increase will also finance the US economy recovery plan in a green key. The problem is that the tax hike is pushing US corporates into European and non-European tax bases. So this suggestion is from here Yellen To impose a lower global corporate tax. Above all, it is an initiative looking at EU countries. In short, one way to give more money to everyone is to help the U.S. implement a financial recovery plan. Clearly, the implementation of this plan will have positive effects, as it is linked to various tax bases around the world and the European Union. In fact, they must end their financially secure regimes. The problem is that one has to go through a vote if the American proposal is to be accepted within the European Union. Now, the absolute majority agrees on all tax matters. There has been a lot of talk about changing the method but never daring to do so. Hence the proposal in the European Union Yellen Countries such as the Netherlands, Malta, Luxembourg and Cyprus veto it, so it is unlikely to pass.

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Located at the OECD level

As we have said, with the tax increase, the US OECD will be number one in terms of corporate tax. This can have a negative impact on foreign direct investment and tax revenues, especially those associated with multinational companies. Another unknown is China. In fact, if you look at its monetary movements, it’s going in the opposite direction to America. Hong Kong plays an important role in this division. The city is one of the largest tax havens in the world. So on the American Chess Board, China is a very important pawn that has not been talked about in the US proposal right now.

Looking at the OECD data on various national taxes, the lowest are those applied in Hungary (9%), Ireland (12.5%), Lithuania (15%) and the United Kingdom (19%). Italy tops the rankings with a tax rate of approximately 28% and is currently in the US central.

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