Yellen Calls for Global Minimum Corporate Tax Rate

The United States Treasury Secretary Janet Yellen has called upon G20 countries to coordinate tax policies.

Yellen said on Monday that she is collaborating with G20 countries to reach an agreement on the minimum rate of corporate taxes globally, after a three-decade race to the bottom on corporate tax rates with the aim of competitiveness.

Countries must “have stable tax systems that raise sufficient revenues in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government,” she was quoted by Reuters as saying.

The Treasury Secretary also plans to use the upcoming meetings of the International Monetary Fund (IMF) and the World Bank to discuss climate policies, as well as the rollout of coronavirus vaccines to help the global recovery from the pandemic.

The U.S. Department of the Treasury reportedly plans to close loopholes that allow companies to shift their profits or headquarters to tax havens, as part of broader tax reforms.