A group of 136 countries established a global minimum tax rate for large companies.
Janet Yellen: US Secretary of the Treasury (Christopher Aluka Berry/Reuters)
Treasury Secretary, Janet Yellensaid on Sunday that he is confident the US Congress will pass legislation to implement the global minimum corporate tax agreed by 136 countries.
Yellen told ABC’s “This Week” program that action requiring the United States to meet the global minimum tax would be included in a so-called reconciliation bill that includes a spending initiative proposed by President Joe Biden.
Asked if he believed the measure would pass, Yellen said, “Yes.”
A group of 136 countries on Friday set the global minimum tax rate for large companies at 15% and sought to make it harder to avoid taxation in a landmark agreement that Biden said has leveled the playing field.
Republican senators said they were concerned the Biden administration was considering bypassing the need to obtain Senate authorization to enforce the treaties. The parliamentary maneuver known as budget reconciliation would allow Democrats to act without Republican votes.
Under the US Constitution, the Senate must ratify any treaty with a two-thirds majority, or 67 votes. Biden’s fellow Democrats control just 50 seats in the 100-member House. In recent years, Republicans have been highly hostile to treaties and have supported corporate tax cuts.
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