June 9 2022

US Treasury Secretary Requests That US Congress Include Global Minimum Tax Implementation in Legislative Agenda

Source: IBFD Tax Research Platform News

In a 7 June 2022 testimony before the US Senate Finance Committee on the Biden Administration's fiscal year (FY) 2023 budget proposals, US Treasury Secretary Janet Yellen appealed to the US Congress to implement the global minimum tax as part of its legislative agenda.

Secretary Yellen highlighted that the global agreement on international tax reform, agreed to last year by 137 countries representing about 95% of the world's GDP, would level the playing field, ensure that corporations share their fair burden of financing government and raise crucial revenues that could be used in investing in security and crisis response.

In addition, Secretary Yellen stated that she is looking forward to working with the US Congress to ensure progress in "[b]uilding a fair and stable tax system that promotes broadly shared growth" which is crucial to "adequately funding investments and to reducing deficits and debt." She noted that the proposed FY 2023 budget investments have more than enough funding "through tax code reforms requiring corporations and the wealthiest Americans to pay their fair share, closing loopholes, and improving tax administration."

She also thanked the US Congress for supporting the Department's endeavours in responding to "Russia's illegal and unprovoked war against Ukraine" and providing USD 40 billion in security, economic and humanitarian aid for Ukraine.