Yellen says US aims to move forward with global minimum corporate tax

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US Treasury Secretary Janet Yellen arrives before speaking at a press conference ahead of the G20 Finance Ministers and Central Bank Governors meeting in Nusa Dua, Bali, Indonesia, July 14 2022. Sonny Tumbelaka/Pool via REUTERS

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NUSA DUA, Indonesia, July 16 (Reuters) – The United States will seek every opportunity to move forward and enact a minimum global corporate tax deal despite opposition from a key Democratic senator , Joe Manchin, to the increase in corporate taxes, said the US Treasury Secretary. said Janet Yellen.

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

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

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His opposition could jeopardize the passage of legislation that would commit the United States to an overall minimum corporate tax of 15%, a key part of a deal Yellen helped broker with nearly 140 countries l ‘last year.

“We are very committed to moving forward with this. This is a really 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 to get things done.”

She said the United States had a strong incentive to move forward because as other countries enact the tax deal, it would tax the foreign profits of American companies, while the United States would leave “those tax revenues on the table rather than capturing them”. ourselves.”

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

On his opposition to climate change provisions, Yellen said the Treasury would support US President Joe Biden’s plans to use executive action and would pursue initiatives by the Financial Stability Oversight Board to assess risks. posed by climate change to financial institutions.

She also referred to the recent sharp appreciation of the US dollar and said this was due to strong economic growth, action by the Fed to raise interest rates and capital inflows.

“The US position is that we believe in market-determined exchange rates” and it’s very rarely appropriate to intervene, Yellen said, adding “I don’t see this as one of those occasions.”

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Reporting by Andrea Shalal Editing by Mark Potter and Clelia Oziel

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