WASHINGTON — The Biden administration and top Democrats in Congress began detailing plans for significant changes to how the United States and other countries tax multinational corporations as they look for ways to raise revenues and finance President Biden’s $2 trillion infrastructure proposal. On Monday, Treasury Secretary Janet L. Yellen threw her support behind an international effort to create a global minimum tax that would apply to multinational corporations, regardless of where they locate their headquarters. Such a global tax, she said, could help prevent a “race to the bottom” in which countries cut their tax rates in order to entice companies to move headquarters and profits across borders. “Together, we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations,” she said. The proposal could raise as much as $1 trillion over the next 15 years from large companies by requiring that they pay higher taxes on profits they earn overseas, according to analyses of similar plans.

Source: International New York Times April 05, 2021 16:41 UTC