US Treasury Secretary Janet Yellen predicted that Congress will move soon to bring the US into line with the global minimum tax agreed last week by 136 countries.
“I’m confident that what we need to do to go along with the minimum tax will be part of the reconciliation package,” Yellen said Sunday on ABC’s “This Week” of the Democrats’ spending bill.
A sweeping overhaul of how multinational corporations are taxed took a big step forward Friday at talks hosted by the Organization for Economic Co-operation and Development, and countries agreed to impose a minimum corporate tax of 15%.
Yellen expressed confidence that Democrats would reach an agreement on the content and size of the long-term spending package, and party moderates rejected President Joe Biden’s $3.5 trillion proposal, Senator Chris Coons, a Delaware Democrat, predicted on “Fox News” Sunday” reduced the number to about two trillion dollars.
“There is a healthy debate going on right now among Democrats with different views,” Yellen said. “And we have a cap on how much we can spend, and there are tough trade-offs to be made.”
The Treasury secretary reiterated her warnings about the consequences if Congress fails to raise the US debt ceiling further or suspend it.
Republicans agreed to a temporary solution last week, pushing the deadline back to September, but they continue to insist that they will not cooperate in a long-term raise or suspension of the debt ceiling.
Yellen stated that if the United States fails to meet its financial obligations, it threatens to stagnate and destroy the country’s credit rating. “It is absolutely necessary that we raise the debt ceiling,” she said.
The article Yellen confident of the US Congress’ response to the global tax deal was written in the Stock Exchange.