{"id":351159,"date":"2021-10-11T10:12:46","date_gmt":"2021-10-11T07:12:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/yellen-says-confident-us-will-implement-global-minimum-tax\/"},"modified":"2021-10-11T10:12:46","modified_gmt":"2021-10-11T07:12:46","slug":"yellen-says-confident-us-will-implement-global-minimum-tax","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/yellen-says-confident-us-will-implement-global-minimum-tax\/","title":{"rendered":"#Yellen says ‘confident’ US will implement global minimum tax"},"content":{"rendered":"

“#Yellen says ‘confident’ US will implement global minimum tax<\/strong>”<\/p>\n

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\n US Treasury Secretary Janet Yellen, pictured on October 6, 2021, at the White House, said she was “confident” Congress would pass legislation to implement a global tax agreement.
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US Treasury Secretary Janet Yellen said Sunday she was “confident” Congress would pass legislation to implement a global tax agreement in the United States enacting a minimum international tax on big corporations.<\/p>\n

The OECD-brokered deal, which sets a global tax of 15 percent, is aimed at stopping international corporations from slashing tax bills by registering in nations with low rates.<\/p>\n

“I am confident that what we need to do to come into compliance with the minimum tax will be included in a reconciliation package,” Yellen told ABC’s “This Week,” referring to the federal budget bill currently being debated in Congress.<\/p>\n

The multi-trillion dollar spending package is the cornerstone of President Joe Biden’s economic agenda.<\/p>\n

Budget reconciliation is a political move that would allow Democrats, who control the House of Representatives and Senate by a slim majority, to act without Republican votes.<\/p>\n

“I hope that… it will be passed and we will be able to reassure the world that the United States will do its part,” Yellen said, praising the “historic” agreement.<\/p>\n

The 136 nations now on board with the global tax agreement represent 90 percent of global gross domestic product.<\/p>\n

Under the deal, they will be able to generate around $175 billion in additional revenue.<\/p>\n

The OECD said countries are aiming to sign a multilateral convention in 2022, with an eye on implementing the reform in 2023.<\/p>\n

Each country in the deal must now incorporate the agreement into its own legislation. However, some questions remain, such as the Biden administration’s ability to get the reform through Congress.<\/p>\n

Democrats want to include the measure in the $3.5 trillion infrastructure spending package, but their majority in the Senate is so small that the party cannot afford any defections among their ranks.<\/p>\n

Two Democratic senators say the amount, which is intended to fundamentally reform US infrastructure and combat climate change, is too high.<\/p>\n

The additional revenue from the international minimum tax would help finance Biden’s plans.<\/p>\n

In addition to the minimum rate, the 136 countries also agreed to re-allocate more than $125 billion of profits from around 100 of the world’s most profitable multinationals to countries worldwide.<\/p>\n

This means companies will have to pay taxes in countries where they have business activities and earn profits, regardless of whether they have a physical presence here\u2014a change that would affect big US tech firms such as Facebook<\/a>.\n <\/p>\n\n

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EXPLAINER: How global deal stems corporate use of tax havens\n <\/p><\/div>\n

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\n \u00a9 2021 AFP<\/p>\n

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Citation<\/strong>:
\n Yellen says ‘confident’ US will implement global minimum tax (2021, October 11)
\n retrieved 11 October 2021
\n from https:\/\/techxplore.com\/news<\/a>\/2021-10-yellen-confident-global-minimum-tax.html<\/p>\n

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