Provided by
Dow Jones
By Richard Rubin and Kate Davidson
WASHINGTON -- Treasury Secretary Janet Yellen argued for a global minimum corporate tax rate Monday, seeking international cooperation that is crucial to funding the administration's $2.3 trillion infrastructure proposal.
President Biden's proposal to raise the corporate tax rate to 28% from 21% would push the U.S. from the middle of the pack among major economies to near the top. The Biden plan would also impose a 21% minimum tax on U.S. companies' foreign income, remove an export incentive and raise taxes on some foreign companies' U.S. operations.
If the U.S. raises its tax rates and imposes higher burdens on U.S. companies' foreign profits, a global minimum tax would help prevent companies based in other countries from having a significant potential advantage. That coordination and the ensuing tax revenue -- not necessarily the aims of U.S.-based companies -- rank high on the administration's priorities.