How do you think global minimum corporate tax rate is necessary? Janet Yellen will use her first major adress at Treasure secretary to discuss it. Here’s all what you need to know about it.
A few days ago President Biden announced his $2 trillion+ infrastructure plan. But $2 trillion will not be available for such a ambitious plan without raising US corporate tax rate. The Biden administration seeks to increase the corporate tax rate from 21% to 28%. That’s huge tax rate increase that will make companies to rethink and relocate to countries with low corporate tax rate or to offshores. So, global minimum tax would reduce the probability of companies relocating to tax heavens.
According to Janet Yellen government must ensure stable tax systems that raise sufficient revenue. G20 nations work together to agree to a global minimum corporate tax rate. The average corporate tax rate in G7 countries is 24%. Former Trump administration reduced tax rate from 35% to 21%.
The Biden administration work hard to convince and reassure that $1.9 trillion stimulus package and $2 trillion infrastructure plan won’t lead to inflation.
Thank you for subscribing, if you haven’t subscribe now.