Friday, 16 April, 2021

Janet Yellen pledges greater United States worldwide co-operation

Treasury secretary Janet Yellen signals that globalisation is back on the agenda Biden admin to call for worldwide tax hike so that US businesses don’t leave country following its corporate tax increase
Sandy Nunez | 07 April, 2021, 01:19

Ms. Yellen said she is urging her Group of 20 nation colleagues to support the move as a way of ending a "race to the bottom" on corporate taxes as countries around the world steadily lowered rates over the past few decades in the hunt for a competitive edge.

German finance minister Olaf Scholz and European Union economic affairs commissioner Paolo Gentiloni signalled their support for the overhaul on Tuesday.

"President Biden's proposals announced last week call for bold domestic action, including to raise the U.S. minimum tax rate, and renewed global engagement, recognizing that it is important to work with other countries to end the pressures of tax competition and corporate tax base erosion", Yellen said. It shows USA readiness to join the global effort to reform corporate taxation, led by the Organisation for Economic Cooperation and Development (OECD), which has been trying to rally support for ending base erosion and profit shifting and to forge a multilateral pact on digital taxation.

In her address to the Chicago Council, Yellen said a personal objective of her is to focus on America; worldwide engagements on fostering full legal rights and greater economic and education opportunities for women and girls, given the clear evidence that this will support inclusive economic growth more broadly. Pillar 1 of the OECD's reform blueprint, which apportions global profits to the countries in which their customers are located, based on the principle that companies must pay tax in every market where they generate value and make profits, makes eminent sense.

US President Joe Biden has exuded confidence that his proposal to hike the corporate tax is unlikely to drive companies out of the country.

Yellen calls for global minimum corporate tax rate in first major address as Treasury secretary

The EU's attempts to unify even what companies are taxed on, rather than setting a common tax rate, have been stalled since 2011 because taxation is a jealously guarded prerogative of national parliaments and often forms a key part of a country's economic model. It's now down to 21 per cent. "So we are still proposing a rate that is lower than it has been for the vast majority of time", she said.

Irish banks used €500m in losses to cut corporatio. The update expressed Canada's concern about the lack of consensus and said Ottawa would act on its own in 2022 with a tax on corporations providing digital services if no global deal is reached.

Yellen, in her speech, criticized the strategy of President Donald Trump's administration, decrying four years when the U.S.

"We welcome the strong support from all G20 Finance Ministers for an agreement on both OECD pillars by July 2021", Ferrie said. "Now is the chance", he said.

The weather forecast for Leitrim and surrounding counties for the Easter weekend
The day will kick off mild enough, before outbreaks of rain, hail and even snow are expected to fall in Ulster. The Road Safety Authority (RSA) urged all road users to exercise care over the Easter weekend.