Yellen told Reuters on Sunday the support of the big global players should help foster bipartisan support among U.S. lawmakers for what is known as Pillar 1 of the tax deal negotiated by the Organization for Economic Cooperation and Development.
Leaders of the world’s 20 biggest economies (G20) this weekend backed the overall OECD deal, which also calls for implementation of a global minimum corporate tax of 15% by 2023.
Yellen said the minimum tax part of the deal would provide welcome certainty for large internet companies like Alphabet Inc’s Google, Amazon.com Inc and Facebook Inc, by eliminating the complicated web of digital services taxes they face in many countries, and could help boost support for the broader deal.
U.S. lawmakers are expected to approve the global minimum tax part of the deal as part of a broad, Democratic-only spending bill winding its way through Congress, Treasury officials said.
