Is a global minimum corporate tax rate actually possible?

The US Treasury secretary has called for a global minimum rate to tackle multinational tax avoidance. But is that really feasible? Or is it just wishful thinking destined to fail when faced with inevitable international disagreement? Ben Chu investigates

Janet Yellen is pushing for an unprecedented level of international coordination (Reuters)

Joe Biden’s Treasury secretary, Janet Yellen, made a striking proposal this week. Yellen, who is also a former head of the US central bank, said it would be desirable if there were a “global minimum corporate tax rate”.

“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom,” she said in a speech to the Chicago Council on Global Affairs on Monday.

“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth, and prosperity.”