House Bill Raises Chance for Global Pact to Curb Corporate Tax Havens

That’s exactly what Treasury officials Itai Grinberg and Rebecca Kysar, who have been in charge of global negotiations for the United States, wrote about in an essay last week. “Jobs and investment can flourish.”

Last week, Janet L. Yellen told her G7 counterparts that the higher rate would “generate funding for a sustained increase in critical investments in education, research, and clean energy.”

In early and mid-October, more information will be released about those plans. With regard to Pillar 1, it is not clear when the United States would implement it, and there are still concerns among business groups as well as Republican politicians about the impact on U.S. firms.

Self-imposed October deadlines can be extended. It will take some time for countries to change their tax laws, so they have set a goal of fully activating the agreement by 2023.

Before it is put to a vote, Democrats on the Ways and Means Committee may make significant changes to the House proposal they have outlined. The Senate Democrats’ proposal, which has yet to settle on a tax rate for corporate foreign earnings, will have to be merged with this one in the end.

According to a former Treasury official in the Obama administration, Manal Corwin, it is possible that the rate could rise despite companies’ efforts to keep it at the current level.

She said, “You never know how these things play out when they need more revenue,” and she was right.

The House Democrats’ proposal for domestic corporate tax rates could be reworked in tandem with any changes. Instead of going all the way up to 28 percent, as Vice President Biden suggested, the House has proposed a graduated tax structure, with the lowest-earning businesses paying only 18 percent and the highest-earning businesses paying 26.5 percent.