Monday, June 7, 2021

Treasury Secretary Yellen Achieves A Victory

 This is her getting the G-7 finance ministers to agree to a minimum 15% corporate tax. It is easy to sneer at this. Some of the nations involved may not pass it. There are many problems with details, such as whether the tax would be on gross or net income.  There are a lot of nations not in on this agreement, including especially large China.

But currently many large corporations are paying zero anywhere, with this reflecting their ability to shift earnings around from nation to nation.  Frankly, although I have long been a fan of Janet Yellen's I really did nor expect this plan to go anywhere.  There would simply be too much international opposition. But she has pulled off at least the quite significant agreement, supported by President Biden. So I would like to recognize this achievement and applaud it, even if in the end they are unable to push it all the way to through to full implementation.

Barkley Rosser


Frank (JMU alum) said...

Prof. Rosser, I have a funny story you might find interesting. In 2015, I had interned at the Fed while Mrs. Yellen was Fed Chair, and was meeting a research assistant for lunch across the street at the Martin building that has been in renovation almost this entire time. Anyway, I arrived at the rooftop cafeteria a few minutes early when no one else was there, looked at what was available that day, turned around and saw both Mrs. Yellen and Vice Chair Fischer, unaccompanied, right behind me. I blushed and said that I was an intern there, and that it was very nice to meet both of them. They were both very polite and then decided what to get for lunch. I overheard them discussing the options, and Mrs. Yellen was thinking of getting a salami sandwich, which Vice Chair Fischer was very surprised at. Mrs. Yellen even remarked, "I know, my husband asked about it too!"

I remember the very interesting talk Dr. Akerlof had at JMU in 2016 (I believe) that you organized. Thank you for that. said...

Thanks for the story. I have eaten in that rooftop venue. Yes, I did organize George's talk at JMU.
A further story on this is that George and Janet actually met in the Fed cafetaria back in the 70s. She was on the research staff back then and he was a visitor. She long had the reputation of eating in the cafeteria even when in her higher positions, partly so she could keep in touch with the staff directly and personally. I think it always helped her.