Treasury officials Itai Grinberg and Rebecca Kaiser, who have led US global negotiations, said in an essay last week that 21 percent “work and investment can thrive in the US.” Insisted.
After a virtual meeting with group counterparts in seven countries last week, Treasury Secretary Janet Yellen said the higher rate was “funding for a sustained increase in significant investment in education, research and clean energy. To produce. “
Details of these plans will be announced in early and mid-October. However, it is not clear when and how the United States will enact that part of the agreement, known as the first pillar, and protracted concerns between corporate groups and Republicans about US companies taking the brunt of new taxes. there is.
The October deadline is self-regulatory and may be postponed. Countries have set a goal of fully enabling the agreement by 2023, as it will take time for the country to change its tax laws.
The House proposal presented by the Democratic Party on the Committee on Ways and Means is still subject to significant changes before the final vote. Ultimately, it needs to be merged with the Senate Democratic Party’s proposal, which has not yet determined the tax rate on foreign income for businesses.
Manal Corwin, a Treasury official at the Obama administration, who now heads Washington’s tax practices at KPMG, said tax rates could still be an inch higher, despite backlash from businesses.
“I don’t know how these work when I need more income,” Corwin said.
Any changes may be made in parallel with the adjustment of the House Democratic Party’s proposal for domestic corporate tax rates. Despite Biden’s request for 28%, House proposed a gradual structure. This ranges from 18% of small businesses with incomes of less than $ 400,000 to 26.5% of businesses with taxable income of more than $ 5 million.