April 5, 2021
Senate Finance Chairman Ron Wyden (D-Ore.) on Monday proposed ways to retool the international tax provisions that were included in the 2017 tax reform law.
The proposal, dubbed a “framework,” consists of ideas (and very few specifics) for how the international tax system could be reformed. Wyden worked with Senators Mark Warner (D-Va.) and Sherrod Brown (D-Ohio) on the framework.
The Senators have called on interested parties to comment on their proposals by April 23. It is expected that they will produce an international tax bill after they have reviewed the comments received. Comments and feedback can be emailed to InternationalTax@finance.senate.gov.
“We’re interested in getting input from all sides,” Wyden said.
Currently, the framework includes the following:
The Wyden-Brown-Warner framework comes on the heels of President Biden last week outlining his $2.5 trillion American Jobs Plan that includes tax increases on multinational corporations. It is not clear at this point if the Senators proposals will become a part of the American Jobs Plan.
The American Jobs Plan as proposed:
Treasury Secretary Janet Yellen spoke Monday on international tax policies and called for a global minimum corporate tax rate.
“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom. Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth, and prosperity,” Yellen told a Chicago Council on Global Affairs audience.
Despite Yellen's encouragement for a global minimum tax, a finalized version of the American Jobs Plan, and the tax provisions it will include, is expected to take months to complete. At this point, it is unclear which tax measures will be a part of the final bill.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.