Yellen bets on support of US companies for global tax

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The Secretary of the US Treasury, Janet Yellen, said US companies must provide crucial support to press Congress to pass a global corporate tax overhaul, which could help defeat opposition from Republicans who could delay or halt ratification of the G20-endorsed deal over the weekend. .

“As the Republican side will look to companies and try to protect commercial interests, my guess is that companies will tell members of Congress to please approve of this,” Yellen said on Tuesday in an interview in Brussels, at the end of the week-long trip to Europe.

At the meeting of finance ministers and central banks of the G20 in Venice, which was attended by Yellen, countries gave the green light to the preliminary pact that would reformulate how and how much governments tax multinationals. The agreement was also supported by 132 nations in negotiations led by the Organization for Economic Cooperation and Development. However, it faces challenges in Washington, where the administration is counting on Congress to pass legislation that fully aligns the US with the agreement.

Yellen had made clear in Venice her expectation that the minimum rate, also known as Pillar 2, would be included in a “fast track” budget bill that will be sent to Congress later this year and that does not require Republican support.

But he emphasized in the interview that many multinational leaders expressed support for the agreement, because the pact could provide more certainty about taxes and rules.

It’s not clear whether the two-thirds support of the Senate will be needed for part of the plan to split taxes on profits from large companies, making it much more difficult to pass. This part is known as Pillar 1.