A project to increase taxes on the wealthy and large corporations

 Congress is expected to pass the 15% global minimum tax on multinational corporations, Treasury Secretary Janet Yellen said, again welcoming the "historic" agreement announced last Friday between 136 countries within the Organization for Co-operation and Development. Economic.

According to "ABC", Yellen said, "I hope that this text will be adopted, and that we can reassure the world that the United States will do its part."

Although the stated goal is to implement global reform by 2023, some questions remain unanswered, starting with the administration's ability to get this agreement through Congress.

“I am confident that what we need to do to comply with the minimum tax will be included in the settlement process,” Yellen said, referring to a parliamentary procedure that would allow the budget law to be passed by a simple majority.

Each country must now introduce the terms of the agreement into its own legislation, which means in the United States that members of the Senate and House of Representatives must vote on it, according to the Al Hurra website.

The agreement, signed by 136 countries representing 90% of global output, is expected to generate about 150 billion euros in additional revenue thanks to this minimum tax.

The bill states that the plan will be funded in part by tax increases for multinational corporations, in addition to other tax increases.

If approved, the tax rate on high-income families will rise from 37% to 39.6%; And it will rise for companies that achieve annual profits of more than $ 5 million from 21% to 26.5%, according to the “Wall Street Journal”, knowing that former President Donald Trump reduced it from 35% to 21%.

Democrats want to use the measure to pass Joe Biden's massive social reform bill, initially set at $3.5 trillion, and including tax increases for big business and the wealthiest Americans.

The compromise would allow Democrats to dispense with Republican opposition votes, but the majority of them are so narrow in the Senate that all Democratic members of the Senate must approve the bill, even though there are two Democrats who consider the cost of the social reform project too high.

According to Reuters, Treasury officials and tax experts said that the global minimum tax would not require a treaty to be implemented, and could be achieved in the settlement bill, because it is a voluntary agreement between countries to set a minimum tax on corporate profits abroad.

And the US has had such a minimum tax rate since the end of 2017, so it's about raising the rate to match the agreement.

Treasury officials see the global minimum tax as less controversial than a higher total corporate tax rate or a higher capital gains tax, because it puts the United States in a more competitive position with other countries.