“First of all, I think this is an economic surrender that other countries are willing to go with, as long as the United States is uncompetitive,” Brady said. “And second, I think there are too many competing interests here to close a deal that can be agreed upon by Congress.”
Other countries must also decide how to turn their commitments into national law.
Mechanisms for changing the taxation method for the largest and most profitable companies, with the exception of financial services, oil and gas businesses, will be central to the debate. There are already concerns that carve-outs could lead to new tax avoidance.
Yellen, who will travel abroad for the second time as Treasury Secretary, will hold bilateral meetings with many counterparts, including officials from Saudi Arabia, Japan, Turkey and Argentina. China, which has signed the world’s minimum tax system, is not expected to send staff to a gathering of finance ministers and central bank governors, so there is no debate between the world’s two largest economies.
San Amance expressed optimism about the trajectory of tax negotiations towards life support in the final year of the Trump administration, saying it was largely due to a new diplomatic approach from the United States.
“It took US elections and some work in the OECD,” he said.
In a panel discussion on taxes and climate change, Yellen’s counterparts said they were grateful for the spirit of cooperation from the United States.
Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, said returning the United States to the table to combat climate change is “welcome” and “transformative.” Le Mer thanked the Biden administration for rejoining the Paris Agreement.
“The United States is back,” he said.
Jim Tankasley Contributed to the report from Washington,Liz Alderman From Paris.
Finance Ministers meet in Venice to sign global tax treaty
Source link Finance Ministers meet in Venice to sign global tax treaty