By David Lawder
WASHINGTON (Reuters) – Treasury Secretary Janet Yellen mentioned on Tuesday that the USA is in talks with different nations to carve out an allowance for the U.S. analysis and improvement tax credit score as a part of the 15% world minimal tax deal.
“We’re negotiating with different nations proper now to attempt to get favorable therapy for the R&D tax credit score and I’m hopeful these negotiations might be profitable,” Yellen mentioned throughout a listening to earlier than lawmakers within the Home of Representatives.
Yellen advised members of the Home Methods and Means Committee that she is going to maintain them knowledgeable of negotiations on this and one other pillar of the Organisation for Financial Cooperation and Growth (OECD) tax deal that covers a redistribution of taxing rights on massive, extremely worthwhile corporations.
Yellen rejected repeated accusations from Republican Congress members that the worldwide minimal tax would put American corporations at a drawback and mentioned that over the long run, adoption of each pillars of the OECD deal would doubtless be barely income optimistic, whereas lowering distortions.
She mentioned the “Pillar 2” settlement for a 15% world minimal tax is “very a lot in assist of targets which can be good for this nation.”
She mentioned that U.S. corporations “did simply advantageous” when the U.S. had the only real world minimal tax of 10.5% and different nations had none, however all nations adopting a 15% tax would discourage corporations to attempt to appeal to funding with decrease tax charges.
Yellen additionally reiterated President Joe Biden’s pledge to not elevate taxes on American households incomes lower than $400,000 per yr.
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