Source: United States Senator for Rhode Island Sheldon Whitehouse
Finance Taxation Subcommittee Chair calls for action to comply with agreement that will level the playing field for American small businesses and workers
Washington, DC – After Treasury Secretary Janet Yellen’s briefing for Senate Finance Committee members this afternoon, the Chairman of the Senate Finance Subcommittee on Taxation and IRS Oversight, Sheldon Whitehouse (D-RI), released the following statement applauding the international agreement establishing a global corporate minimum tax rate that the Biden administration negotiated last month, and called for passage of the Build Back Better Act to reform the U.S. international tax regime to deliver a fairer system for domestic businesses and workers:
“We need an international tax system that’s fair to American workers and small businesses, not one that allows multinational corporations to pay nothing in taxes by moving jobs and profits overseas. A sensible international corporate rate will go a long way toward achieving that fairness. I’m pleased to see the proposal draws on my legislation with Congressman Doggett to end tax breaks for sending jobs and profits overseas, and by the progress we’ve made in including these proposals in the Build Back Better Act. In complying with the international agreement, America should lead the world in enacting the strongest possible reforms, rather than waiting on foreign countries to dictate terms for America.”
The international deal announced in October establishes a 15 percent minimum corporate tax rate and requires major global businesses to pay taxes in countries where their goods or services are sold.
The international tax reforms included in the Build Back Better Act, which are among the largest offsets for the package, is drawn from legislation by Whitehouse and Congressman Lloyd Doggett (D-TX). The Build Back Better Act would roll back tax incentives created by the 2017 Trump tax giveaway bill to send jobs and profits overseas, and create a more even playing field for American workers and small businesses. It would generate over $300 billion over ten years, according to JCT estimates.