Monday, August 15, 2022
  • Privacy Policy
  • Copyright
TV USA | Live
Weather ☀
Exchange Rates $
  • Politics
  • International
  • Society
  • Sports
  • Blog
  • Contact
No Result
View All Result
  • Politics
  • International
  • Society
  • Sports
  • Blog
  • Contact
No Result
View All Result
TV USA | Live
No Result
View All Result
Home International

White House sees global minimum corporate tax as key to broader multilateral approach

TV USA | Live by TV USA | Live
May 21, 2021
in International
0
White House sees global minimum corporate tax as key to broader multilateral approach

U.S. President Joe Biden speaks about jobs and the economy at the White House in Washington, April 7, 2021.

Kevin Lamarque | Reuters

The White House on Friday stressed that its effort to institute a global minimum corporate tax is a top priority for President Joe Biden and represents more than merely a talking point for the globe’s economists.

Daleep Singh, who serves as both a deputy national security advisor and as a deputy National Economic Council director, told CNBC that the effort to persuade allies to adopt a minimum tax is motivated by both economic and national security factors.

“It’s not just a tax issue. It’s about: How do we fund initiatives that we think are central to our domestic renewal?” he said.

Singh explained that unifying the Organization for Economic Cooperation and Development behind the minimum tax would afford all members a chance to compete solely on their ability to foster innovation and the ingenuity of their respective workforces.

The U.S. Treasury Department has taken the lead in trying to persuade contemporary nations to adopt a global minimum tax. The department unveiled its 15% target on Thursday, and said that it was encouraged by early conversations with foreign officials in the past week.

A global minimum tax would also allow governments to better generate revenues for domestic projects that the Biden administration deems important to national security, Singh said.

“Our national security strategy is predicated on domestic renewal. So, the kind of challenges I was describing earlier — the inequality that we observe, the enormous importance of addressing an existential climate crisis, people dropping out of the workforce — the government has to play a more active role in addressing those challenges.”

CNBC Politics

Read more of CNBC’s politics coverage:

Treasury was quick to note that the 15% proposal, below where some had forecast, should be thought of as a sort-of floor and that subsequent talks could eventually push it higher.

As head of the department, Secretary Janet Yellen has repeatedly stressed the importance of stopping an international “race to the bottom” on global corporate tax rates. If a coalition of countries agree to the 15% rate, it could help governments raise revenues and prevent certain jurisdictions from monopolizing the market for incorporation.

Countries with lower corporate rates, like Ireland and its 12.5% rate, have historically expressed doubts about efforts to drum up support for a unified approach. Even a few defectors to the plan could jeopardize the initiative by setting lower rates and effectively inviting companies to relocate there.

The average top corporate rate among OECD countries is 23.5%, according to a 2020 Tax Foundation study.

Still, those in favor of a global minimum argue that some countries, via various tax breaks and incentives, routinely lure corporations with far-looser taxation schemes.

Asked how the administration plans to persuade low-tax countries to agree to Washington’s plans, Singh said he and his colleagues are stressing the importance of a level playing field in terms of tax policy.

“We are very clear: Companies have been competing for too long on the basis of [countries’] tax rates. That’s a destructive race to the bottom that leaves everyone worse off. Especially workers, who are generating an ever-growing share of our tax revenues,” he said.

“So our proposal is to agree on a minimum tax rate for corporations across the world. And then, we compete on our ability to innovate, on the dynamism of our workforce, and our technological edge,” Singh added.

That may be why the Biden administration has opted for a flexible benchmark: Low enough not to spook skeptical countries, but open to edits down the road.

The rate “matches the minimum tax for highly profitable companies the Biden Administration is proposing, so 15% is in line with where Biden believes the lowest level of the corporate taxes, when all deductions are fully accounted for,” Raymond James analyst Ed Mills told CNBC in an email Thursday evening.

“This is lower than the 19% President Obama proposed and recognizes that even 15% will be a heavy lift,” he added.

The Biden administration is in the middle of fierce negations at home, specifically for two massive pieces of legislation that would fundamentally reshape parts of the U.S. economy. 

The infrastructure-heavy American Jobs Plan would invest several hundred billion dollars to rebuild hard infrastructure but also to fund scientific innovation, pay home health aides and construct about 500,000 electric vehicle charging stations. 

Its parallel proposal, the American Families Plan, would earmark $1.8 trillion to funding for social programs that include paid family leave and free community college. 

The White House hopes to fund much of that spending through its Made In America tax plan, a sweeping revision of the tax code that seeks to expand the IRS in order to crack down on tax evasion, end the stepped-up basis to assess inherited capital gains, and institute the global minimum tax.

The Biden team has also proposed raising the U.S. corporate rate to somewhere between 25% and 28%. He wants households that make over $1 million per year to pay more on capital gains and to end the carried-interest loophole.

TV USA | Live

See author's posts

Tags: Breaking News: Politicsbusiness newsEconomyGovernment taxation and revenuePoliticsU.S. EconomyWorld economy
Previous Post

Judge orders top Trump World lobbyist’s assets partially frozen

Next Post

Supreme Court to hear case that could overturn Roe v. Wade.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Stories

  • Capitol Hill's dangerous kangaroo court

    The desperation of the Jan. 6 House Committee

    0 shares
    Share 0 Tweet 0
  • U.S. sanctions on Russia violate the Constitution

    0 shares
    Share 0 Tweet 0
  • Voting kicks off in a New York City mayor’s race like no other

    0 shares
    Share 0 Tweet 0
  • Unleash the Power of Postbiotics in Pets

    0 shares
    Share 0 Tweet 0
  • Tensions Rise Over Future of Abortion Rights in US

    0 shares
    Share 0 Tweet 0

International

Saskatchewan’s Sweet Nutrition quadruples sales since 2019, lands deal with 7-Eleven
International

Saskatchewan’s Sweet Nutrition quadruples sales since 2019, lands deal with 7-Eleven

June 29, 2022
Saskatchewan’s Sweet Nutrition quadruples sales since 2019, lands deal with 7-Eleven
International

Saskatchewan’s Sweet Nutrition quadruples sales since 2019, lands deal with 7-Eleven

June 29, 2022
Saskatoon artist inks locals to raise money for Ukraine
International

Saskatoon artist inks locals to raise money for Ukraine

June 28, 2022
‘I kept it hidden’: Survivor of Kamloops Indian Residential School speaks for 1st time
International

‘I kept it hidden’: Survivor of Kamloops Indian Residential School speaks for 1st time

June 28, 2022
WATCH: Global National – June 27
International

WATCH: Global National – June 27

June 28, 2022
‘A body check’: Kids restrained over 2000 times in one year in Ontario’s child-welfare system
International

‘A body check’: Kids restrained over 2000 times in one year in Ontario’s child-welfare system

June 28, 2022
NOTE FROM JOÃO BAPTISTA BORGES, EMERGENCY PLAN TO COMBAT EPIDEMIC COVID-19: MINEA WANTS AN EPAL THAT MEETS THE POPULATION’S NEEDS
International

NOTE FROM JOÃO BAPTISTA BORGES, EMERGENCY PLAN TO COMBAT EPIDEMIC COVID-19: MINEA WANTS AN EPAL THAT MEETS THE POPULATION’S NEEDS

June 16, 2022

TV USA | Live

 JNews - Premium WordPress news & magazine theme by Jegtheme.

 

 

© 2022 JNews. All rights reserved.

No Result
View All Result
  • Politics
  • International
  • Society
  • Sports
  • Blog
  • Contact

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT