What impact will the US Treasury Secretary's call for the lowest corporate tax in the world have on enterprises?

The quantitative relationship or proportion between enterprise income tax rates should pay the enterprise income tax base. It is also an important indicator to measure the level of corporate income tax burden in a country and the core of corporate income tax law. The higher the income tax rate, the less the net profit. According to some media reports, Ye Lun said in his speech that in order to maintain competitiveness, it is not only how to make American-headquartered companies compete with other companies in the world for mergers and acquisitions, but also the tax rate plays an important role: to ensure that the government has enough tax system to invest in basic public goods, cope with the crisis, and share the cost of government financing equally with all citizens. According to previous reports, one of the sources of funds for US President Biden's $2 trillion infrastructure stimulus plan is to raise the corporate tax rate from 2 1% to 28%. In addition, the minimum tax rate of overseas profits of American enterprises will be raised from 10.5% to 2 1%.

In a speech prepared for a meeting before the annual spring meetings of the International Monetary Fund (imf) and the World Bank, Yellen particularly criticized the Trump administration's unilateralism and said that the priority of the United States will never mean that the United States will be isolated, and the lack of global leadership and participation will make American institutions and economy more vulnerable. In addition, when asked about the $65,438+$0.9 trillion economic stimulus plan she signed into law last month, Yellen said that the plan would not cause inflation. I don't agree. ) Our employment situation is still very bad. There are still more than 9 million fewer jobs in the United States than before the epidemic. We have fiscal space for stimulus, partly because the United States has been in a low interest rate environment in recent decades, which is common in developed countries.

The reason is that Biden is raising money for increasing the tax plans of individuals, families and enterprises, especially enterprises. It is understood that the corporate tax rate has increased from the original 2 1% to 28%, and the minimum tax rate for overseas profits of American companies has increased from 10.5% to 2 1%. On the other hand, because a large number of American companies have moved overseas or to countries with low corporate taxes, although most of these American companies are in their own countries, the US government has expressed some concern in the face of this situation. In order to prevent enterprises from fleeing, it has to call on all countries to raise the minimum corporate tax.

The increase of the minimum tax will inevitably transfer the profits of foreign companies operating in the United States to countries with low tax rates, which is a manifestation of protecting the competitiveness of American companies, but it will also put American multinational companies at a disadvantage in other countries. However, it is obvious that only raising the minimum corporate tax in the United States will inevitably affect the competitiveness of domestic enterprises and lead to a decline in the ability of the United States to attract enterprises. If other countries want to increase taxes, if only the United States increases taxes and other countries don't, American companies will inevitably emigrate or register in low-tax countries.