Janet Yellen official Federal Reserve portrait
U.S. Treasury Secretary Janet Yellen is in Europe for discussions on a wide range of issues, from the War in Ukraine to the growing problem with worldwide inflation. Also, she is continuing negotiations over a plan to set a global 15 percent minimum corporate tax rate.
The reason for establishing such a global minimum corporate rate is to eliminate tax havens. Today, many nations try to woo foreign corporations to move their home offices there by offering tax incentives. Even very low rates would mean increased a revenue for a nation if it can coax companies to move to it, as well as lead to the creation of new jobs. Similar things happen all of the time within the U.S. where the various states compete with one another by offering businesses lower tax rates.
Janet Yellen was in Poland on Monday to advance the new plans where she met with Poland’s Prime Minister Mateusz Morawiecki, and finance minister Magdalena Rzeczkowska. But Poland has reservations about it. And as a member state of the E.U., Poland has been able to lobby for a delay in the implementation of any such new laws requiring minimum corporate tax rates within the block. Poland’s leaders have expressed doubts that such a move would actually succeed in stemming the tide of corporate expatriations.
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“We strongly believe it’s in the interest of Poland to be part of this so we’ve had very good, frank discussions,” Yellen told the press after a meeting with the Polish Prime Minister. “We’re hopeful that they will come on board and be able to see their way clear in the not too distant future with the deal. Certainly there’s interest and they’re thinking very hard about it.”
The Polish Prime Minister’s Office released a statement saying, “Poland will continue to call for further tightening of EU sanctions, especially in the energy, finance, transport and services sectors. We must reduce Russia’s economic and military potential as soon as possible.”
