Yellen: U.S. Will Push Global Minimum Corporate Tax Despite Manchin

@reuters
Yellen: U.S. Will Push Global Minimum Corporate Tax Despite Manchin

Treasury Secretary Janet Yellen

By Andrea Shalal

NUSA DUA, Indonesia (Reuters) -The United States will look for every opportunity to move ahead and enact a global minimum corporate tax agreement despite the opposition of a key Democratic senator, Joe Manchin, to raising corporate taxes, U.S. Treasury Secretary Janet Yellen said.

Yellen told reporters on Saturday that finance officials from the Group of 20 major economies reached strong consensus about many issues, including the need to address a worsening food security crisis, despite differences over Russia's war in Ukraine that prevented the leaders from issuing a joint statement.

Manchin, who holds the pivotal vote in the evenly divided Senate, this week said he would not support a Democratic proposal for new climate change spending and higher taxes for corporations and wealthier Americans.

His opposition could imperil passage of legislation that would commit the United States to a 15 percent global minimum corporate tax, a key part of an agreement that Yellen helped negotiate with nearly 140 countries last year.

"We are very committed to moving ahead with this. This is a truly important global initiative," she said on the second day of a two-day G20 meeting in Bali. "I can tell you that we will continue to look for every possible opportunity that we have to move this forward."

She said the United States had a strong incentive to move forward because as other countries enacted the tax agreement, they would be taxing the foreign profits of U.S. companies, while the United States would be leaving "that tax revenue on the table rather than capturing it ourselves."

Yellen said it was important that Manchin did signal support for legislation to reduce prescription drug prices for seniors and extending subsidies that help keep health insurance costs lower.

On his opposition to climate change provisions, Yellen said Treasury would support President Joe Biden's plans to use executive action, and would continue initiatives under the Financial Stability Oversight Council to evaluate the risks posed by climate change to financial institutions.

She also addressed the recent strong appreciation of the U.S. dollar and said it was due to strong economic growth, moves by the Fed to raise interest rates, and capital inflows.

"The U.S. position is that we believe in market-determined exchange rates" and it is very rarely appropriate to intervene, Yellen said, adding "I do not see this as one of these occasions."

(Reporting by Andrea ShalalEditing by Mark Potter and Clelia Oziel)

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Charlie Kirk

Charlie Kirk

Rupert Murdoch announced on September 21 that he will be stepping down as chairman of Fox Corp. and News Corp. after a 70-year career poisoning global media with right-wing lies and hate. Fox is now in the hands of Lachlan Murdoch, whose track record at the company indicates he is even more grimly ideological than his father, serving as the main force backing Tucker Carlson’s on-air white supremacy and pushing the network to support Donald Trump’s 2020 election lies despite their financial consequences.

Keep reading...Show less
Bob Menendez

Sen. Bob Menendez

Sen. Bob Menendez of New Jersey isn't backing down as he faces a lurid set of corruption charges—complete with gold bars and stacks of cash—and many prominent Democrats have had nothing to say. That silence is troubling, but it’s also a departure from the previous time Menendez was indicted, when Democrats rallied around him. But Friday evening, the dam may have started to burst, with New Jersey Democratic Gov. Phil Murphy and the speaker of the state Assembly calling on Menendez to resign, along with Rep. Mikie Sherill (D-NJ).

Keep reading...Show less
<script type="text/javascript" src="https://log.nordot.jp/js/beacon-1.1.0.js"></script> <script type="text/javascript"> nor.pageviewURL = "https://log.nordot.jp/pageview"; nor.setPageData({ opttype: "unknown", pagetype: "detail", conttype: "post", uiid: "e_S481RqwJFu", postid: "920984060570566656", contdata: { title: "Yellen says U.S. aims to move ahead with global minimum corporate tax despite setback", numimg: 1, cvrimg: 0, pubdate: "1657966683", chlang: "en-US" }, chunitid: "721958051058909184", cuunitid: "731904312584683520" }); nor.pageview(); </script>