Yellen doubles down on need for global minimum tax and eliminating debt ceiling
A group of 136 countries agreed to the 15% global corporate tax
Treasury Secretary Janet Yellen has reiterated support for the global minimum tax as Congress continues to debate President Biden’s titanic infrastructure bill.
Biden has sought and won support from over 130 countries and territories for a global minimum tax, which would tax companies at a minimum of 15% and enforce taxes based on where they conduct business rather than where they are based.
Yellen told ABC’s "This Week" Biden’s bill will likely include the tax as part of his spending initiatives.
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"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 said, calling it a "historic agreement." "I hope that it will be passed and we will be able to reassure the world that the United States will do its part."
"We should be competing on the basis of our strengths, of our people, of our ability to innovate for our institutions and not a race to the bottom that simply deprives all countries, the United States and other countries that participate in this race of the resources we need to invest in our people and our economies," Yellen argued.
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A group of 136 countries and territories on Friday agreed to set the minimum global corporate tax rate of 15%. The U.S., then, would vote on updating domestic tax law to reflect the change but has yet to agree on a plan to raise the debt ceiling.
Yellen – who is in favor of eliminating the debt ceiling entirely – remains confident that a deal will happen in time.
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"I have confidence that Speaker Pelosi and Leader Schumer will be able to manage this so that we don't face this situation," Yellen said. "This would be a self-manufactured crisis that affects our economy at a time when we're recovering from the pandemic."