As corporate America is digesting proposed tax hikes as part of POTUS's infrastructure package, Treasury Sec. Yellen is pushing for a Global Minimum Tax Rate (lobbying other countries to commit to a tax floor).
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Yellen frames it as a way to “stop the race to the bottom” and foster more equitable economic growth among countries and regions.
A global minimum tax would be a giant win for Biden and could help American multinational companies who are likely to see a tax hike from being at a competitive disadvantage.
If all multinational companies faced the same tax rate, corporate America would have NO REASON to set up “figurehead offices” in low tax countries or globe troll for the cheapest labor/tax combo.
However, implementing this would be VERY difficult. Low tax countries would not agree to this. They use their taxation structure as a carrot to lure business in.
Yellen may be respected around the world, but the likes of China, Russia and those who use the current structure to their advantage have NO reason to play ball.
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