Biden’s Minimum Foreign Tax a Tougher Sell in Congress After G-7

  • Democrats watching timing of domestic, global tax plans
  • Republican support needed to implement parts of deal
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Treasury Secretary Janet Yellen’s weekend deal with G-7 counterparts on a framework for a global minimum corporate tax has made for a tougher sales job for President Joe Biden’s proposed changes to U.S. tax law.

The G-7 committed to seek a global minimum corporate tax rate of “at least 15%.” That leaves a potential gap with the 21% rate that Biden has pitched to Congress for U.S. companies’ profits logged abroad. Any discrepancy could mean American firms effectively paying a surtax on profits in some nations.