Treasury Secretary Janet Yellen’s weekend deal with G-7 counterparts on a framework for a global minimum corporate tax has made for a tougher sales job for President Joe Biden’s proposed changes to U.S. tax law.
LISTEN: Bloomberg congress reporter Laura Davison discusses Biden’s minimum foreign tax with Paul Allen and Bryan Curtis on Bloomberg Daybreak Asia.
The G-7 committed to seek a global minimum corporate tax rate of “at least 15%.” That leaves a potential gap with the 21% rate that Biden has pitched to Congress for U.S. companies’ profits logged abroad. Any discrepancy could mean American firms effectively paying a surtax on profits in some nations.
“It’s very difficult, and maybe impossible, to call for 15% for …