Treasury Secretary Janet Yellen met with the G7 leaders last week and scored a long-sought achievement: she reached an agreement with the finance ministers from the G7 on a global minimum corporate tax.
Part of that deal was intended to garner support for corporate increases for which the Biden administration has championed. The idea is to have companies pay a minimum of 15 percent on income, regardless of their locations.
But as Yellen headed home to the U.S. over the weekend, she acknowledged that she might encounter a challenge when speaking to Republican lawmakers. Ever since the Biden administration introduced more than a $3 trillion tax increase on corporations, Republicans have stood unwaveringly against it. Republicans say that Biden’s plan could cause further inflation and decrease business investment, which would ultimately put American companies at a competitive disadvantage.
The plan will be presented to more countries at the Group of 20 meetings in Italy next month. Lawmakers in the U.S. will need to adjust their taxing policies in tandem with their international partners. Yellen hopes that a compromise on corporate taxes can come with a bipartisan agreement at home.
