The Global Tax Policy Evolution
This is a clear evolution of tax rates, and America understands that it is the one that will lose, when companies go and incorporate in low-tax domains like Ireland, even though all operations are happening in the US. So, America’s top economic leader wants the world to coordinate on tax policy. It would be a hard sale since nations have many ways they can capture value, well beyond tax receipts.
Treasury Secretary Janet Yellen called for a global minimum tax in a speech on Monday, ushering in a new phase of the Biden administration’s attempt to block companies from "shifting profits overseas to evade taxes." Yellen used the speech to the Chicago Council on Global Affairs to mount a case for nations globally to coordinate on an international tax rate that would be applicable to big multinational corporations regardless of where their headquarters are located. It was only then, she said, that the current "race to the bottom" on tax policy, where nations slash tax rates to attract big companies, could be curtailed.