Treasury Secretary Janet Yellen's weekend deal with G-7 colleagues over a global minimum corporate tax framework has created a more difficult sales task for President Joe Biden's proposed changes to US 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 has committed itself to striving for a worldwide minimum tax rate of "at least 15%". This leaves a potential gap in the 21 percent rate Biden proposed to Congress for US corporation's overseas-recorded earnings. Any discrepancy could mean that American firms are effectively paying a premium on profits in some countries.
"It is very difficult and maybe impossible to get 15% for …