Treasury Secretary Janet Yellen said on Sunday that she is confident that Congress will pass a minimum global corporate tax that has received the support of over 130 countries.
“I am confident that what we need to do to come into compliance with the minimum tax will be included in a reconciliation package. 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 on ABC’s “This Week.”
Yellen noted that the “historic agreement” would curb countries from trying to reduce their corporate tax rates in an effort to attract U.S. businesses, ultimately hurting American workers.
“And this agreement to place a halt on how low tax rates can go so that all of us have the opportunity to collect tax revenue from successful corporations, and not just from workers. This is really something we need to make globalization work and to make it work for American workers,” she said.
More than 130 countries agreed to a minimum global corporate tax rate of 15 percent that would apply to organizations that have over 750 million euros in revenue, the Organization for Economic Cooperation Development said last week.
The organization said that the initiative is expected to take hold starting in 2023.
Sen. Mike Crapo (R-Idaho) and Rep. Kevin Brady (R-Texas) have blasted the deal, which has the support of the Biden administration.
“Rather than securing an agreement that would provide certainty and immediately eliminate digital services taxes, the Administration has instead used this global forum to advance its short-sighted domestic tax agenda,” they said in a statement Friday.