US Treasury Secretary Janet Yellen stated that they are working with the G20 countries on the global minimum corporate tax, adding that a global minimum tax can be used to ensure that the global economy develops on the basis of a a more level playing field to tax multinational corporations, promoting innovation, growth and prosperity.
Yellen made assessments on the global recovery after the outbreak of the new type of coronavirus (Covid-19) at the event organized by the Council on Global Relations in Chicago.
In drawing attention to the three main goals that guide America’s economic relations with the world, Yellen emphasized that the first of them is a stable and growing world economy that benefits the U.S. economy.
Yellen said that in trying to maintain a strong global economy, attention must be paid to current and potential risks to financial stability.
WARNING DO NOT WITHDRAW FINANCIAL SUPPORT EARLY
Noting that the second goal is to fight poverty and promote a more inclusive global economy, Yellen said that if action is not taken, there may be a deepening global divide between rich and poor countries.
Emphasizing that it is too early for developed economies to declare victory, Yellen said: “I urge our partners to continue strong financial support, avoid withdrawing support too early to encourage a strong recovery and help prevent the emergence of global imbalances “.
Explaining that the epidemic must be stopped by making vaccines and tests as accessible as possible to help poor countries overcome the crisis, Yellen noted that low-income countries are at risk of being left behind and that it is possible that they are not included in the scope of vaccination until 2023 or 2024 at the current rate.
Yellen highlighted the need for more work and financing for low-income countries to secure vaccine purchases, address production shortfalls and finance the domestic market launch.
ANOTHER GLOBAL CHALLENGE THAT ADAPTS TO TECHNOLOGICAL CHANGE
Emphasizing that the challenges are global, Yellen noted that Covid-19 clearly demonstrated that responses to a pandemic require global cooperation and that they are working with partners to prepare for future crises.
Yellen explained that another global challenge is how to adapt to technological change, but that digitization raises concerns about inequality and cybersecurity.
Noting that it will work closely with nationals and partners to promote innovation in digital finance for cheap, instant and reliable business and financial transactions, Yellen also said that they will also work to modernize legal and regulatory frameworks to take into account risks and inherent threats. in the use of these new technologies.
“WE WORK WITH THE G20 FOR THE CORPORATE MINIMUM CORPORATE TAX”
Yellen noted that another result of the interconnected world is the race to lower corporate tax rates that has been going on for 30 years.
“Competitiveness is more about how American companies deal with other companies in their global M&A proposals. This means that governments have stable tax systems that provide enough revenue to invest in essential public goods and respond to crises, and that all citizens are quite burdened by government funding. “It’s about sharing.”
Stating that they are working with the G20 countries to determine the global minimum corporate tax rate, Yellen said: “We can use a global minimum tax together to ensure that the global economy develops on the basis of a more equal playing field to tax to multinational companies, promoting innovation, growth and prosperity. “
Noting that the biggest long-term threat facing the world is climate change, Yellen added that they are working to ensure that climate risk is integrated into the financial system so that financial institutions, regulators and investors can make informed decisions. .