Rightly, Yellen says that competitiveness is a whole lot more than how companies fare against rivals in global M&A bids.
In her speech, Yellen said the measure would stop what she said was a "30-year race to the bottom", where corporations are searching for more favourable conditions in other countries, making global economies compete by gradually lowering their corporate tax rates, making the funding of government projects considerably more hard. It's not yet clear if the almost 140 participants will be able to strike a deal by the self-imposed deadline this summer.
"We hope that the announcements of Secretary Yellen regarding the United States position, withdrawing the safe harbour regime proposal and calling for a minimum corporate taxation, will spur a new momentum towards agreement on a consensus-based global solution this summer", he said.
Earlier in the day, three Senate Democrats, Ron Wyden of Oregon Sherrod Brown of OH and Mark Warner of Virginia put forth an alternative plan that included higher levies on offshore profits and stronger penalties for companies that move income outside the country to avoid paying taxes to the Internal Revenue Service. In comments on Monday, she also pledged that restoring USA multilateral leadership would strengthen the global economy and advance USA interests.
Any US move to change the way big American multinationals are taxed could have implications for Ireland.
Both said a deal could be struck by the summer, with Mr Scholz arguing it could end a "race to the bottom in taxation".
During Donald Trump's presidency, the business-minded Republican slashed the US rate from 35% - a global high - to 21%, arguing the previous rate put American companies at a global disadvantage and resulted in many of them moving their businesses overseas. "We must seize this historic opportunity", French finance minister Bruno Le Maire, who had clashed with the previous USA administration over global tax, said as he welcomed Yellen's pledge.
Finance ministers of the G20 club of large economies are expected to discuss the proposal during a virtual meeting on Wednesday hosted by Italy.
There are also several big economies with the rate lower than Biden's proposed 28%, including Italy, with its 24% corporate income tax (excluding 3.9% regional production tax), Spain, with its general 25% corporate income tax rate, and Russian Federation with its 20% maximum rate.
She highlighted the Biden administration's plans for sustained economic support, with a $2.25 trillion infrastructure plan following the $1.9 trillion pandemic-relief bill signed last month.
Four years ago, Trump's newly sworn-in Treasury secretary, Mnuchin, shocked American allies during the administration's first worldwide meeting with an approach so unilateral that it extended to outright disengagement. He spoke up during a plenary session just once - to urge the group to set aside any vows to avoid protectionism. "Credibility overseas begins with credibility at home", she said Monday.