According to The Washington Post, implementing any agreement on a global minimum tax can be problematic due to its non-binding nature.
US Treasury Secretary Janet Yellen discusses with colleagues from other countries a possible change in corporate tax rules to establish a global minimum tax on multinational corporations. This was reported on Monday by The Washington Post.
According to her sources, the actions of the head of the financial department are carried out as part of the process of considering the possibility of raising the corporate tax rate to finance priority government spending by the US administration. According to the publication, Yellen is consulting with the member countries of the Organization for Economic Cooperation and Development (OECD) on the conclusion of an agreement on the issue of raising the rate. According to The Washington Post, implementing any OECD agreement on a global minimum tax can be problematic due to its non-binding nature. Also, the publication continued, such agreements must be approved by Congress.
During the election campaign, the current US President Joe Biden proposed to raise the corporate tax rate in the US from 21% to 28%. Congressional Republicans have expressed concern that such an increase could affect US competitiveness and force US corporations to register abroad. The 45th US president, Republican Donald Trump, in 2017 reduced the corporate tax rate from 35% to 21%.