The U.S. Treasury has proposed a global minimum tax for companies. Initially a more moderate recommendation than med hit, 15% instead of 21%. Although he suggested that 15% should be considered the minimum level, it was a starting point that could be raised to a “more desirable” level during multilateral discussions. Treasury Secretary Janet Yellen will continue the discussion as part of next month’s meeting of G7 finance ministers.
The US proposal was announced this week after talks with rivals from 24 countries within the OECD framework on reforming the tax system of multinational corporations. It aims to facilitate a deal over the next few months.
The introduction of the minimum tax avoids being defined as harmful competition between states by running down international taxes to attract businesses. Washington wants to tighten the deadline, reach an agreement in the summer and pass a law within a year. In fact, the multinational tax is an integral part of tax plans to mobilize resources and finance large domestic projects, particularly the $ 2.3 trillion infrastructure revitalization plan.
In a statement, the US Treasury said, “The international tax architecture must be sustainable, the global playing field must be fair, and countries must create an environment in which they can work together to maintain their tax base and ensure global taxation. The system is reasonable and ready to respond to the needs of the 21st century economy. ” The Treasury claimed that the global corporate minimum tax would actually stimulate innovation, growth and prosperity in various countries.
However, a multifaceted agreement still remains and there are a number of issues. A 15% drop would not be painful for the White House: the tax would generate less revenue than previously desired by the federal treasury, and could provide significant benefits to companies headquartered outside the U.S. – or move them abroad. The Biden government plans to raise the domestic tax rate for businesses from the current 21 per cent to 28 per cent.