Treasury Secretary Janet Yellen Calls for Reform of Corporate Tax System
May 18 2021 - 10:31AM
Dow Jones News
By John McCormick
Treasury Secretary Janet Yellen, speaking Tuesday at a U.S.
Chamber of Commerce event, called for reform of the corporate tax
system to help pay for infrastructure upgrades and other goals
advanced by President Biden.
"We believe the corporate sector can contribute to this effort
by bearing its fair share," she said, according to remarks shared
in advance of delivery. "At the same time, we want to eliminate
incentives that reward corporations for moving their operations
overseas and shifting profits to low-tax countries."
Ms. Yellen, speaking at the chamber's online Global Forum on
Economic Recovery, labeled corporate taxes as being at a
"historical low" of 1% of gross domestic product as she argued the
administration is seeking to return them to historic norms.
Mr. Biden's proposal calls for raising the corporate tax rate to
28% from 21%, a move that would push the U.S. from the middle of
the pack among major economies to near the top.
"We are confident that the investments and tax proposals in the
jobs plan, taken as a package, will enhance the net profitability
of our corporations and improve their global competitiveness," she
said in prepared remarks. "We hope that business leaders will see
it this way and support the jobs plan."
Ms. Yellen also said that the nation needs to reorient its
fiscal policy.
"We haven't maintained our infrastructure let alone modernized
it," she said in prepared remarks. "We haven't sufficiently
supported public research and development to ensure that America
will maintain its technological edge. We haven't embraced the
investments in education and training that we need to keep up with
technological change and to compete in the international
marketplace as we once did."
Ms. Yellen also repeated her call for a global minimum corporate
tax to "stop the race to the bottom."
If the U.S. raises its tax rates and imposes higher burdens on
foreign profits of U.S. companies, a global minimum tax would help
prevent companies based in other countries from having a potential
advantage.
(END) Dow Jones Newswires
May 18, 2021 10:16 ET (14:16 GMT)
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