June 17, 2021
Ways & Means holds hearing with Treasury Secretary Yellen
The House Ways & Means Committee June 17 held a broad-ranging hearing focusing on the President's FY 2022 budget with Treasury Secretary Janet Yellen that included discussion of the Biden administration's proposed international tax changes and related OECD BEPS 2.0 negotiations, and proposals to narrow the tax gap. The Committee continued to relitigate the TCJA and its benefits, and Republicans expressed concern about increasing deficits, debt, and inflation.
In opening statements, Chairman Richard Neal (D-MA) said the Biden administration doesn't support tax increases on the middle class and neither does he, and Ranking Member Kevin Brady (R-TX) called for reaching a deal on infrastructure that "isn't funded on the backs of working families."
Secretary Yellen gave several explanations regarding the Administration's intentions regarding multilateral negotiations for a global minimum tax, saying with the proposed GILTI rate of 21% and global minimum tax rate of at least 15%, the gap between the US tax on foreign earnings and the tax that is imposed by other jurisdictions will actually be narrower than it is today. "We want to make sure other countries don't lower their taxes to attract our companies," she said.
Testimony is available here.
Additional information is available in the attached Tax Alert.
Ways & Means hearing