fbpx
White House ‘Social Media Summit’: No Facebook, No Twitter, No Transparency CopyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more

US calls on G7 to quickly implement global tax reform

show caption
In this file photo US Treasury Secretary Janet Yellen speaks to reporters at the White House in Washington in May 2021./AFP
Print Friendly and PDF

Sep 10, 2021 - 10:01 AM

WASHINGTON — US Treasury Secretary Janet Yellen on Thursday urged countries in the G7 group of richest nations to quickly implement a global tax reform aimed at curbing tax avoidance.

The proposal announced in June would impose a 15 percent minimum corporate tax globally, and is aimed at stopping companies from shifting their profits to jurisdictions with lower tax rates.

G20 finance ministers backed the deal in July, followed by 134 Organization for Economic Co-operation and Development member countries representing more than 90 percent of the world’s GDP, according to the Treasury.

“Secretary Yellen today expressed support for ongoing efforts to improve the international tax system and the importance of swift implementation of the new system,” Treasury said in a statement following a meeting of G7 finance ministers held virtually.

However the reform has been opposed by Ireland, which is not part of the G7 and a favorite headquarters location for companies, particularly US tech and pharmaceutical giants, who prefer their lower 12.5 percent tax rate.

The United States is also working on a reform targeting companies that benefit from tax havens, with the objective of making these companies pay a minimum of 21 percent tax regardless of the rate in the country where their profits are declared.

“Together with the global deal, this policy will generate funding for a sustained increase in critical investments in education, research, and clean energy — which will improve the lives of US citizens and help the US remain the best place in the world to do business,” Yellen said.

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.