US Treasury Secretary Janet Yellen has signaled a stronger engagement on issues from climate change to human rights to tax evasion, pledging to restore America’s economic leadership.
“America first must never mean America alone,” she said in her first major speech on its overseas economic policy. Ms. Yellen is also keen for greater global cooperation, rolling back Donald Trump’s protectionist policies. She also raised the issue of a global corporate tax rate.
“Over the last four years, we have seen first hand what happens when America steps back from the global stage,” Ms. Yellen said pointing to a reversal of Mr. Trump’s international economic policies.
The US “isolated ourselves and retreated from the international order that we created,” she added. Marking an American return to the global stage, she said: “For in today’s world, no country alone can suitably provide a strong and sustainable economy for its people.”
As part of the increased global leadership role for the US, Ms. Yellen outlined the case for a harmonized corporate tax rate across the world’s major economies.
“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations and spurs innovation, growth, and prosperity,” Yellen said during an online interview with the Chicago Council on Global Affairs.
Corporate taxes are one of the revenue-raising proposals for President Joe Biden’s $2.25 trillion (£1.62 trillion) package of infrastructure and other spending announced last week.
Ms Yellen wants to halt what she described as an international “race to the bottom” by countries competing to lure corporations with lower taxes.