A Higher Tax Rate: G20 Economies?
The G20 seeks to adopt a higher minimum corporate tax rate than the 15% minimum agreed to at the OECD meeting in June. In an official statement, U.S. Treasury Secretary Janet Yellen expressed her desire to push for a higher tax rate to be adopted by G20 economies. This sentiment was echoed by French Finance Minister Bruno le Maire, who was keen to see the corporate tax rate set as high as possible and remarked that corporate finances of the G20 nations could witness striking changes soon. An adoption of a higher tax rate by G20 nations would theoretically mitigate issues of growing corporate tax avoidance, although in practice large corporates often use international holdings to substantially avoid tax burdens.