Yellen makes case for a global minimum tax on multinational corporations

Treasury Secretary Janet Yellen on Monday urged a global minimum tax rate on corporations in a push to assert U.S. leadership in ongoing international tax negotiations.

The goal is to prevent companies from relocating wherever they find lower taxes.

“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth and prosperity,” Yellen said in her first major speech since becoming Treasury secretary.

The message reinforced President Joe Biden’s recent call for raising the minimum tax already in place on U.S. companies’ profits from their global operations, in addition to increasing the domestic 21 percent corporate tax rate to 28 percent.