Treasury Secretary Janet Yellen said on Sunday she was confident the Democrats’ budget would include a global minimum corporate tax just days after nearly 140 countries approved the measure.
“I am convinced that what we need to do to comply with the minimum tax will be included in a reconciliation package,” Treasury Secretary Janet Yellen said. Recount ABC News on Sunday. “I hope it gets passed and we can reassure the world that the United States will do its part.”
Although the United States and 135 other countries have signed the agreement, each nation must pass its own legislation to enact minimum tax rates. Democrats are now developing the budget, a spending program that would reshape the social safety net, but the process has been slowed down by disagreements between the moderate wing and the left wing of the party.
Discussions on the global minimum corporate tax began earlier in 2021 and were led by the Organization for Economic Co-operation and Development (OECD). The agreement requires a corporate tax of at least 15% for multinational companies with revenues above 750 million euros per year, which the OECD projections could generate up to 150 million euros. billions of dollars in tax revenue per year.
Another report found that companies transferred $ 1.38 trillion in profits each year to global tax havens, resulting in a loss of $ 245 billion in annual tax revenue in the countries where the profits were generated.
Yellen said the deal could reverse the “global race to the bottom” on corporate tax rates and give countries the “resources we need to invest in our people and our economies.”
“[It] is really something we need to make globalization work and make it work for American workers, ”she added.
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