Biden and Democrats Detail Plans to Raise Taxes on Multinational Firms
While Treasury Secretary Janet Yellen told about the support of U.S. to a global minimum tax, top Democrats unfurled their own plan to increase taxes on multinational firms on Monday.
The administration of Biden and top Democrats of Congress started to discuss the plan in detail for important changes about how U.S. and other several countries can provide tax to multinational corporations wherever their headquarters locate as the administration was searching for appliance to increase revenues and finance president Biden’s $2 trillion infrastructure proposal.
L. Yellen said that, “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.” The effort’s aim is, “making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”
Democrates of congress declared their proposal in the meantime and for this, the tax can increase $1 trillion for the next 15 years from big companies.
Democrats and White House officials tells that their aim is to make sure the companies pay their exact share and that they don’t resign jobs & profits abroad in order to avoid to pay the taxes in U.S.
Danielle Rolfes, a leader of KPMG’s international tax practice in Washington, says that if Ms. Yellen can reach the agreement, “there could be a cogent international tax system” with same significant incentives for investments in U.S.
But she said, “I would be concerned, if the rates get too high, that the U.S. might have competitiveness issues.”
Seanator Patrick J. Toomey, Republican of Pennsylvania, told in a statement, “This is why Secretary Yellen is imploring other developed countries to punish their workers and businesses with their own tax increases.”