Treasury Secretary Janet Yellen outlined the case for a harmonized corporate tax rate among the world's major economies, part of an effort to restore global leadership and credibility with U.S. allies following the unilateralist approach of the Trump era.
In her first major speech on international economic policy, Ms. Yellen marked an American return to the global stage. She singled out China as she said that the U.S. needs a "strong presence in global markets" to level the playing field.
"America first must never mean America alone," she said in remarks to a conference Monday ahead of the spring meetings of the International Monetary Fund and World Bank. "A lack of global leadership and engagement makes our institutions and economy vulnerable."
Ms. Yellen criticized the strategy of President Donald Trump's administration, decrying four years when the U.S. "isolated ourselves and retreated from the international order that we created."
The new multilateral approach begins with the U.S. taking a leading role in working with Group of 20 nations to find an appropriate minimum corporate tax. Ms. Yellen wants to halt what she described as an international "race to the bottom" by countries competing to lure corporations with lower taxes.