U.S. Treasury Secretary Janet Yellen said on Sunday that a new mechanism to allow more countries to tax large, highly profitable multinational firms may not be ready for consideration by lawmakers until the spring of 2022.
Yellen told a news conference after a G20 finance leaders meeting in Venice in Italy that the OECD “Pillar 1” re-allocation of taxing rights was on a “slightly slower track” than a global corporate minimum tax of at least 15% as part of a major tax deal among 132 countries.
G20 finance ministers and central bank governors endorsed the deal over the weekend, but questions remain over the ability of U.S. President Joe Biden’s administration to persuade a deeply divided Congress to ratify the changes.
Yellen said she hoped to include provisions to implement the so-called “Pillar 2” global minimum tax into a budget “reconciliation” bill this year that Congress could approve with a simple majority.
Reference: CNBC
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