LONDON – French Finance Minister Bruno Le Maire welcomed President Joe Biden’s government support on a proposed global tax on technology giants on Monday, saying a multilateral agreement could go into effect as early as this spring.
It comes shortly after Biden’s nominee for Treasury Secretary, Janet Yellen, expressed support for the call for technology companies to pay a higher proportion of their revenues in the countries where they operate.
Former President Donald Trump strongly opposed the proposed tax arrangements, saying they discriminated against US companies.
Le Maire said via videoconference at the Davos Agenda summit: “I think it is very good news that the new Finance Minister Janet Yellen has just explained that she was open about the idea of considering a new international taxation with the two pillars: First of all digital taxation and of course also a minimal taxation on corporate tax. “
“I think we are on the right track. There is a possibility of reaching an agreement on this new international tax system by the end of this spring 2021. And I can tell you that we will do our utmost to pave the way. make an agreement, ”Le Maire told CNBC’s Geoff Cutmore.
Yellen had backed calls for a new global levy on tax giants in a Senate confirmation hearing last week.
“It would allow us to rally a fair share of businesses while maintaining the competitiveness of our businesses and reduce the incentives that US companies now have for offshore operations,” said Yellen, telecom service Agence France-Presse reported. on January 20.
French Economy and Finance Minister Bruno Le Maire speaks at a press conference in Paris on January 14, 2021.
THOMAS COEX | AFP | Getty Images
International Taxes
Le Maire added, “The winners of the economic crisis are the digital giants. How can you explain to some sectors that have been hit hard by the crisis and are paying (their) taxes that the digital giants don’t have to pay? pay in taxes? “
“This is unfair” and inefficient, he said.
When asked whether it was prudent for France to introduce corporate tax in the midst of the coronavirus pandemic, Le Maire replied: We must “do our best to maintain the same level of investment, otherwise we clearly run the risk of going out with the open countries. of the technology race of the 21st century. And we need to think about the kind of economy we want to build. “
“We want to build a sustainable economy. We want to reduce inequalities between countries. And we also want to reduce inequalities in the international tax system.”
The World Economic Forum is being held online this year due to the coronavirus crisis. In May, a physical congregation of business leaders, political thinkers and heads of state will take place in Singapore.