Treasury Secretary Janet Yellen on Monday defended a global minimum tax on multinational companies to prevent companies from evading taxes by shifting their profits abroad. Yellen’s proposal is within the Biden Administration’s plans to increase revenues in the United States in the face of the heavy outlay of public money to revitalize the economy, as The New York Times has advanced. On March 10, the US president signed a new economic stimulus package of 1.9 trillion dollars.
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Yellen has advocated for the worldwide coordination of an international tax rate that applies to multinational companies, regardless of where they are based as a formula to end tax competitiveness. A global tax of this type could help avoid the “race to the bottom” between countries, which try to outdo each other by lowering tax rates to attract companies, as explained by the Treasury secretary.
“Competitiveness goes beyond how US-based companies perform vis-à-vis other companies in global M&A bidding. It is about ensuring that governments have stable tax systems that raise enough revenue to invest in. essential public goods and responding to crises, with all citizens equally sharing the burden of government funding, “Yellen argued.
His remarks came as the White House and Congressional Democrats begin looking for ways to pay for President Biden’s extensive infrastructure plan to rebuild America’s roads, bridges, water systems and power grid. . Among objectives of the economic program of the Biden administration is the fight against tax evasion and tax shelters.
“‘America first’ should never mean ‘America alone’. Because in today’s world, no country alone can provide a strong and sustainable economy for its people. Over time, a lack of leadership and global commitment makes our institutions and our economy are vulnerable, “stressed the Secretary of the Treasury.
Three rescue packages
The latest rescue package is the third approved in the United States since the pandemic began a year ago, after the $ 900 billion that Congress promoted in December and the $ 2.2 trillion endorsed in March 2020, which It was the largest in the history of the country.
The so-called American Rescue Plan includes new direct payments of $ 1,400 to taxpayers who have incomes less than $ 80,000 per year per person, an amount greater than the checks of 600 and 1,200 that were issued in previous bailouts. “85% of American households will receive direct payments of $ 1,400 per person,” Biden said.
In addition, the package contains a bailout of 350,000 million dollars for local and state governments, 170,000 million for the reopening of schools, 14,000 million dollars to strengthen the vaccination plan and another 46,000 for the COVID-19 testing system.
It also extends until September 6 unemployment benefits for the pandemic, which were to expire on March 14; and contains subsidies for rent and funds for food programs, as well as for airlines, local transportation systems, and the rail network.