The new US Treasury Secretary's statement goes hand in hand with Biden's plans to raise the domestic corporate tax rate from 21% to 28% to fund his administration's $2.3 trillion infrastructure plan.
Ms. Yellen said she is urging her Group of 20 nation colleagues to support the move as a way of ending a "race to the bottom" on corporate taxes as countries around the world steadily lowered rates over the past few decades in the hunt for a competitive edge.
G20 finance ministers and central bank governors will gather virtually on Wednesday.
In her speech, the Treasury chief also called on other major economies "to continue a strong fiscal effort and avoid withdrawing support too early, to promote a strong recovery and help avoid the emergence of global imbalances".
Biden said that he is going to push as hard as he can to change the circumstances so the USA can compete with the rest of the world. "The tax was 36 per cent".
The critics argue that the higher rates would make the U.S. less attractive to companies, that would then relocate to countries with lower corporate tax rates.
The EU's attempts to unify even what companies are taxed on, rather than setting a common tax rate, have been stalled since 2011 because taxation is a jealously guarded prerogative of national parliaments and often forms a key part of a country's economic model.
"It won't necessarily be the reference rate for the minimum tax that gets decided at the OECD", the source said. "Not at all", Biden said, asserting that there is no evidence of that.
The corporate tax hikes in the USA and Britain are being presented as an effort to raise billions in revenue to help offset the cost of pandemic-related support programs and stimulus spending. Canada's corporate tax rate steadily declined during the period from 1980 to 2015, yet research found corporate tax revenues did not follow the same downward trend. But participants haven't yet reached a deal, and while most involved support the idea of a global minimum tax, the negotiations also include a potential accord on digital taxation that has been blocked by long-standing disagreements over how to approach the issue.
In an online briefing, she said the current disparities in corporate tax rates had triggered "a large amount" of tax shifting and tax avoidance, reducing the tax base of governments. "It is a big concern of ours". Yellen in February told her counterparts at a virtual meeting of Group of 20 finance officials that the U.S.is no longer calling for a so-called safe harbor rule that would allow USA tech companies to opt out of paying such a tax overseas. Olaf Scholz and Bruno Le Maire should now take up Yellen's proposal and push for a global minimum tax rate of 21 per cent.