Washington – Following remarks today by U.S. Treasury Secretary Janet Yellen on international priorities, Business Roundtable President & CEO Joshua Bolten released this statement:
“Business Roundtable members welcome the Administration’s focus on ensuring the international tax system creates a more level playing field for globally engaged U.S. companies, generating economic growth and opportunity for American workers. The Administration’s proposed global minimum corporate tax rate, however, threatens to subject the U.S. to a major competitive disadvantage.
“U.S. companies already face a global minimum tax on their income, known as GILTI. No other country has followed the U.S. lead in enacting such a tax. The Administration proposes now to double the rate of the minimum tax on U.S. companies, believing other countries will follow suit. Recent experience at the OECD suggests this is unlikely. Before unilaterally subjecting U.S. companies to a competitive disadvantage, the Administration should secure agreement from OECD and Inclusive Framework countries on a global minimum tax that they will agree to implement on their own companies. And any U.S. minimum tax should be aligned with that agreed upon global level.
“We look forward to working with Secretary Yellen, the Administration and Congress to ensure American companies can compete on a level footing around the world.”