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U.S. Republicans vow to oppose Yellen's G7 tax deal, casting doubt on its future - Reuters
Jun 08, 2021 1 min, 18 secs
Senate Republicans on Monday rejected Treasury Secretary Janet Yellen’s G7 deal to impose a global minimum corporate tax and allow more countries to tax big multinational firms, raising questions about the U.S.

"It's wrong for the United States," Republican Senator John Barrasso said of the tax deal struck on Saturday by finance ministers from the G7 wealthy democracies.

In the landmark agreement, G7 finance ministers agreed to pursue a global minimum tax rate of at least 15% and to allow market countries to tax up to 20% of the excess profits - above a 10% margin - of around 100 large, high-profit companies.

The deal could pave the way for broader buy-in by G20 countries and some 140 economies participating in international negotiations over how to tax large technology firms such as Alphabet Inc's (GOOGL.O) Google, Facebook Inc (FB.O), Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O).

Treasury official, said Yellen's G7 deal could be done through legislation that overrides existing bilateral tax treaties - using a simple majority as part of budget reconciliation procedures.

Wyden, who chairs the tax-writing Senate Finance Committee, told reporters that deterring the use of tax-haven countries and ensuring minimum levels of corporate taxation were "in the long-term interest of American workers."

Toomey, who sits on the Finance Committee, said he believed Democrats could push through the tax changes with only Democratic votes, without a treaty, but added that would require the United States to “surrender” and agree not to oppose changes imposed by other countries

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