[ad_1]
U.S. Treasury Secretary Janet Yellen said on Sunday she was confident Congress would approve legislation to implement the global corporate minimum tax agreed to by 136 countries.
Yellen told ABC’s This Week that actions to bring the United States into compliance with the global minimum tax would likely be included in the so-called reconciliation budget bill containing the spending initiatives proposed by Joe Biden.
When asked if she was convinced the measure would pass, Yellen replied, “Yes.”
Yellen also said that once Congress and the White House agree on spending plans, it would be up to lawmakers to increase the federal debt limit – the subject of a bitter political war. before and after a short-term agreement to extend it was reached this week.
“Once Congress and the administration have decided on spending plans and tax plans, it is simply their responsibility to pay the bills that flow from them,” Yellen said.
“It’s a household chore. Because really, we should be debating the government’s fiscal policy.
Experts agree that a default on the US debt, if the ceiling was not raised, would be catastrophic for the global economy.
A group of 136 countries on Friday set a minimum global tax rate of 15% for large companies and sought to make it harder for those companies to avoid taxation in a landmark deal that Biden says , level the playing field.
The congressional maneuver known as budget reconciliation would allow Senate Democrats 50-50 to act without the Republican votes typically required to reach a 60-vote threshold.
Republicans have said they fear the Biden administration is considering bypassing the need to gain Senate authority to implement treaties.
Under the US constitution, the Senate must ratify any treaty by a two-thirds majority, or 67 votes.
In recent years, Republicans have been overwhelmingly hostile to treaties and have supported corporate tax cuts.
Source link
