The US Department of the Treasury has proposed establishing a global corporate tax rate of at least 15%.
According to the department, currently, the overall corporate tax is virtually zero and corporate taxes are being reduced. This undermines the ability of the United States and other countries to collect taxes, which are needed "to make critical investments." The US Treasury has reported:
"A global corporate minimum tax rate would ensure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and would spur innovation, growth, and prosperity."
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The US Treasury's proposal was made in the context of negotiations on an international tax architecture, which are being led by the G20 and the Organization for Economic Cooperation and Development.
US Treasury Secretary Janet Yellen made a proposal on April 5 to introduce a single minimum threshold for corporate taxes. She pointed out that for the past 30 years, countries have been cutting corporate tax rates in order to attract multinational corporations to their territories. According to Yellen, the introduction of a minimum tax will eliminate tax competition between countries.