Janet Yellen, Secretary of the Treasury of the United States, plans to present a project to promote a global minimum corporate tax. The initiative arises with the purpose of financing part of the infrastructure mega-plan promoted by President Joe Biden, for which it would need a favorable international economic context.
One of the fundamentals of the project is that, through this international tax, It could prevent companies from moving or filing their taxes in other countries with lower taxes, or even tax havens, as published by Axios. In this way, both competitiveness and the flow to the public coffers would be improved.
Biden’s idea is to raise corporate taxes from the current 21% to 28% in the United States; at the start of the Donald Trump administration, the tax rate was 35%. In addition, American companies they will have to pay a 21% withholding of the income that comes from their activities abroad. This modification represents an increase of 9.5% with respect to the current rate.
The Government is already in dialogue with other G20 countries to reach an agreement on an international minimum tax for companies. Yellen’s mission is to convince ministers in other countries that big economies need to act together to avoid big losses.
According to Axios, the announcement took place at the Chicago Council on Global Affairs, where Yellen argued that “the premise is that governments have tax systems that allow them to obtain revenue to finance investment in public goods and respond to crises.”
In turn, as detailed in the extract of the speech that would have been leaked to the press, it is intended that all citizens contribute equitably to the financing of the State.
The United States is leading the motion for a restructuring of the global tax system. Source: Pexels.
Yellen’s change in stance on bitcoin
So far, the preferred solution chosen by governments to deal with the current financial crisis resulting from the Covid-19 pandemic has been the inorganic increase in monetary issuance. The consequent devaluation of national currencies has strengthened the narrative of bitcoin (BTC) as a store of value and hedge against inflation.
The current Secretary of the Treasury, on numerous occasions spoke about the first cryptocurrency. For example, in November 2020, after the news of Yellen’s appointment to her position was known, CriptoNoticias reported the economist’s low esteem for bitcoin (BTC) and crypto assets in general.
In public statements and in various forums, the now American official made clear his stance against bitcoin instability and the large number of illicit operations that, according to her, cryptocurrencies allow.
Nevertheless, recently he has been more optimistic about it. In January 2021, Yellen assured the Senate Finance Committee that cryptocurrencies “can improve the efficiency of the financial system.” He also recognized that bitcoin has the potential to improve global transactions.