Washington – The PACE Coalition today issued the following statement in response to Treasury Secretary Janet Yellen’s call for a global minimum tax rate:
“While we share Secretary Yellen’s goal of a competitive international stage, imposing noncompetitive taxes on American companies would have the complete opposite effect. No other country imposes a minimum tax on its companies operating abroad. Secretary Yellen’s effort to encourage our OECD competitors to impose their own minimum taxes is a tacit acknowledgement that an increase in America’s GILTI rate only works if our OECD partners follow suit—which is, at best, extremely unlikely. In fact, no country has followed the United States since enactment of the GILTI in 2017.
“To ensure a thriving global economy, maintaining a competitive tax rate would better spur the innovation, growth and prosperity the Biden Administration rightly seeks.”