Janet Yellen Has No Authority to Set Global Corporate Tax Rate
Fairfax, Va. – Treasury Secretary Janet Yellen is proposing a minimum global corporate tax rate, to avoid, what she called, “a race to the bottom on corporate tax rates.” It is part of President Joe Biden’s broader proposals to raise U.S. corporate taxes from 21 percent to 28 percent. Yellin said, “We’re working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom.”
Americans for Limited Government President Rick Manning issued the following statement in reaction to Yellen’s announcement:
“Treasury Secretary Janet Yellen’s attempt to unilaterally create a minimum corporate tax around the world reveals a breathtaking ignorance of the separation of powers in the Constitution. The power of taxation is vested in Congress, according to Article I, Section 8 of the Constitution. What’s more, one Congress cannot bind a future Congress when it comes to setting tax rates. Yellen has neither the power to impose a tax rate, nor the ability to create a long-term deal unless it is within the context of a treaty which must be ratified by a two-thirds majority of the Senate.
“The idea of setting a minimum tax rate for corporations will not stop corporate flight from high tax countries. One would think the treasury secretary would be busy printing money to cover the Biden spend-orama rather than seeking to make deals she doesn’t have the power to make.”
For media availability contact Catherine Mortensen at 703-478-4643, or cmortensen@getliberty.org.