Global corporate tax rates should have a bottom line of 15% be pushed higher moving forward, the United States Treasury proposed in a statement.
- The Treasury said the 15% rate is a floor and called on countries to be “ambitious” and push such rates higher.
- The proposal aims to keep the global playing field fair and ensure that the system is equitable in the 21st century global economy.
- The Treasury said countries should work together to maintain tax bases and work together to curb corporate tax competition and corporate tax base erosion.
- Countries have pushed to lower their corporate tax rates to lure in firms to invest, as there is currently no minimum globally.
- The Treasury said this undermines the ability of countries such as the United States to raise the revenue needed to make critical investments.
- The proposal said the 15% minimum rate will spur innovation, growth, and prosperity. It will also provide equality for the middle class and working population.