Congressional tax deal badly needed – Yellen


WASHINGTON DC: U.S. Treasury Secretary Janet Yellen said on Sunday (Monday in Manila) that she hoped the U.S. Congress would approve a key pillar of the global corporate tax agreement reached by some 136 countries and jurisdictions.

“I am confident that what we need to do to comply with the minimum tax will be included in a reconciliation plan,” Yellen told ABC’s “This Week,” referring to a spending plan being negotiated by the White House and Democratic lawmakers. .

“I hope (…) that it will be adopted and we can reassure the world that the United States will do its part,” she said.

Yellen’s remarks came after the Organization for Economic Co-operation and Development (OECD) on Friday announced the finalization of a major reform of the international tax system, which includes a global minimum corporate tax rate of 15%.

“It’s really a historic agreement. It’s something that’s very

important for American workers to stop what has gone on for decades in corporate taxation, a race to the bottom where countries try to cut taxes to attract our businesses, ”Yellen said.

“And this deal to stop lowering tax rates so that we all have the opportunity to collect tax revenue from successful businesses, not just workers.

This is really something we need for globalization to work, ”she added.

The global corporate tax deal will also reallocate more than $ 125 billion in profits from around 100 of the world’s largest and most profitable multinational corporations to countries around the world, ensuring those companies pay a fair price. share of tax wherever they operate and generate profits.

The deal will be handed over to the Group of 20 (G20) finance ministers meeting in Washington DC on October 13, and then to the G20 leaders’ summit in Rome, Italy, later this month, according to the OECD.

However, the Republican leader of the US Senate Finance Committee, Mike Crapo, and the Republican leader of the House Ways and Means Committee, Kevin Brady, have lambasted the deal, which has the backing of the administration of the United States. Joe Biden.

“Rather than strike a deal that would provide certainty and immediately eliminate taxes on digital services, the administration has instead used this global forum to advance its short-sighted national tax agenda,” Crapo and Brady said on Friday in a report. communicated.

“In doing so, the Biden administration is putting politics before progress and abandoning the fate of the US economy to our foreign competitors,” they said.


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