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The Call for a Minimum Global Corporate Tax

The Call for a Minimum Global Corporate Tax

| May 05, 2021
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The Call for a Minimum Global Corporate Tax
Yellen wants to help the U.S. raise sufficient revenue.

 

Provided by Peter Livingston

 

In a speech to the Chicago Council on Global Affairs, U.S. Treasury Secretary Janet Yellen has called for a minimum corporate income tax that would be shared by countries all over the world.1

 

The decrease of corporate tax rates around the world has led to what Yellen has described as a “30-year race to the bottom,” which has led to tax systems that have difficulty raising sufficient revenue. While low corporate tax rates might seem good for businesses, the other side of the coin is that countries with insufficient revenue are unable to make investments in important public needs. Some of those needs also serve the corporations, such as highways, rail, and ports needed to transport goods, to name but one example.1

 

Yellen says she intends to work with the White House and a group of 20 nations to set a minimum that helps the advanced economies meet their various needs.1

 

While the idea of a global minimum might cause alarm for some, it’s a complicated issue, with a variety of potential pros and cons to consider. You might have questions or concerns, especially if you are a business owner. I’d be happy to discuss that with you and help you understand this issue as it unfolds.

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations

  1. APNews.com, April 5, 2020
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