Janet Yellen calls for a global minimum tax on companies. Could it happen?

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The minimum tax is one of two “pillars” at the centre of the OECD-brokered negotiations

CORPORATE TAXATION is one of the thorniest issues in international economic policy. Janet Yellen, President Joe Biden’s treasury secretary, and a former head of the Federal Reserve, is duly weighing in. On April 5th she grabbed the attention of the occupants of corner offices worldwide with a speech to the Chicago Council on Global Affairs. The headline was a call for countries to agree on a global minimum tax rate for large companies.

Numerous sets of talks aimed at resolving the problem have been held under the auspices of the OECD, a club of mostly rich countries. Progress, however, has been slow. Frustrated, dozens of countries—from Belgium and Britain to India and Indonesia—have introduced or proposed on the local sales of foreign firms with online platforms. The Trump administration said these levies discriminated against American business and threatened tariffs.

. Talks were reasonably constructive, even with Team Trump, say officials. But queasiness over setting a floor persists, particularly among the EU’s lower-tax members, such as Ireland, with its lean corporate-tax rate of 12.5%. Were a global minimum set at 21%, American firms operating in Ireland—of which there are many—would have to pay top-up tax of 8.5% to their government, on top of the 12.5% paid to Dublin, undercutting the Irish advantage.

 

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Yellen looking for international cooperation on tax . Australia has Beijing's knee on its neck thru trade restrictions. The US is now exporting the same commodities to China replacing those traditionally from Australia. Allies? nytimes washingtonpost globeandmail HuffPostUK

So, like OPEC, except taking instead of producing?

How do they plan to establish a global tax among countries with such different tax rates?

Muhammad Qasim has seen in many dreams exactly how Islam and Muslim Ummah will rise again in the entire world. This is also present in many hadiths of Prophet Muhammad SAW, and predictions made by popular Islamic Muftis. Muhammad Qasim Dreams -

What if maximum tax is debated instead The role of goverment is to work with the aim of people's welfare. It is not the role of people to work with the aim of government welfare...

I suggest 0% corporate tax. Then tax capital gains and dividends as ordinary income.

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