WASHINGTON -- U.S. Treasury Secretary Janet Yellen on Monday urged the adoption of a minimum global corporate income tax, an effort to at least partially offset any disadvantages that might arise from the Biden administration's proposed increase in the U.S. corporate tax rate. “It is important to work with other countries to end the pressures of tax competition and corporate tax base erosion,” Yellen said. Biden's U.S. corporate tax proposal includes an increase to the U.S. minimum tax that was included in Trump's tax law, from 10.5% to 21%. Biden's corporate tax measure would also penalize other countries without a minimum corporate tax by more heavily taxing their subsidiaries in the U.S.Auerbach said that the OECD has helped foster other agreements around issues such as bank secrecy. He also said Republicans should reverse any corporate tax hike if they regain a congressional majority in upcoming elections.

Source: ABC News April 05, 2021 16:41 UTC