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The United States is proposing a global corporate tax

The United States is proposing a global minimum corporate tax rate of 15 percent. Alternatively, it could be a bit higher.

The United States is proposing a global corporate tax
Yazar: Tom Roberts

Yayınlanma: 21 Mayıs 2021 16:44

Güncellenme: 6 Kasım 2024 02:41

The United States is proposing a global corporate tax

The United States is proposing a global minimum corporate tax rate of 15 percent. Alternatively, it could be a bit higher. Businesses around the world should pay a tax of at least 15 percent on their profits, the US Treasury Department said on Thursday. This proposal is part of an effort to enforce the global minimum corporate tax. The final tax rate could be even higher. According to the US Treasury Department, the rate of 15 percent is at the bottom, while discussions on the global minimum corporate tax should remain ambitious and the final compromise rate could be even higher. American companies currently pay a tax of 21 percent. Former President Donald Trump's administration has reduced the corporate tax, previously to a 35 percent high. Current president Joe Biden expects the tax to increase to 28 percent. According to US Treasury Secretary Janet Yellen, a global minimum corporate tax would discourage companies from moving their headquarters to other countries in order to reduce the tax burden, even though they have most operations in the US. "We need to stabilize the international tax architecture, ensure fair global conditions and create an environment in which states work together to maintain the tax base and ensure that the global tax system is fair and able to meet the needs of the 21st century global economy," the US Treasury Department said in declaration. Yellen criticized the global race between countries for the lowest possible corporate tax in order to attract foreign companies.
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