LONDON – French Finance Minister Bruno Le Maire on Monday welcomed the support of President Joe Biden’s administration in connection with a proposed global tax on technology giants, saying a multilateral agreement could enter into force immediately this spring.
It comes shortly after Biden’s candidate for secretary of the treasury, Janet Yellen, voiced support for demands for technology companies to pay more of their revenues in their countries of business.
Former President Donald Trump has strongly opposed the proposed tax arrangements, saying he discriminates against American companies.
Speaking at a video conference at the Davos Agenda summit, Le Maire said: “I think it’s very good news that new Secretary of the Treasury Janet Yellen has just explained that she is open to the idea of thinking about a new international tax. with the two pillars: First, digital taxation and, of course, a minimum tax on corporate income tax. “
“I think we are on the right track. There is a possibility of finding an agreement on this new international tax system by the end of this spring 2021. And I can tell you that we will make every effort to pave the way for an agreement, “Le Maire told Geoff Cutmore CNBC.
Yellen backed calls for a new global tax on the tax giants during a Senate confirmation hearing last week.
“It would allow us to collect a fair share of corporations while maintaining the competitiveness of our business and diminish the incentives that American companies now have for offshore activities,” Yellen told Agence France-Presse on January 20. .
The French Minister of Economy and Finance, Bruno Le Maire, speaks during a press conference in Paris, on January 14, 2021.
THOMAS COEX AFP | Getty Images
International taxation
Le Maire added: “The winners of the economic crisis are the digital giants. How can you explain to sectors that have been hit hard by the crisis and are paying their level of taxes that the digital giants will not have to pay the same amount of taxes?”
“This is unfair and inefficient,” he said.
When asked whether it is prudent for France to seek to impose corporate taxes on the background of the coronavirus pandemic, Le Maire replied: “We must make every effort to keep the same level of investment, otherwise we risk open countries coming out of the technological race in 21st century. And we have to think about the kind of economy we want to build. “
“We want to build a sustainable economy. We want to reduce inequalities between nations. We also want to reduce inequalities in the international tax system.”
The World Economic Forum is taking place online this year due to the coronavirus crisis. A physical congregation of global business leaders, thinkers and heads of state is scheduled to take place in Singapore in May.