Finance ministers meet in Venice to finalize global tax deal

“I think first of all this is an economic capitulation that other countries are happy to accept, as long as America makes itself so uncompetitive,” Brady said. “And second, I think there are too many competing interests here for them to finalize a deal that would be acceptable to Congress.”

Other nations must also determine how to transform their commitments into domestic law.

The mechanics of changing the way the biggest and most profitable companies are taxed and making exceptions for financial services, oil and gas companies, will be at the heart of the discussions. Some already fear that the exclusions will lead to new tax loopholes.

Ms. Yellen, who is on her second international trip as Secretary of the Treasury, will hold bilateral meetings with many of her counterparts, including officials from Saudi Arabia, Japan, Turkey and Argentina. China, which has adhered to the global minimum tax framework, is not expected to send officials to the gathering of finance ministers and central bank governors, so there will be no talks between the two largest economic powers in the country. world.

Mr Saint-Amans expressed optimism about the trajectory of the tax negotiations, which were on life support during the last year of the Trump administration, and attributed this in large part to the new diplomatic approach of the United States. .

“It took an American election and some work at the OECD,” he said.

During the roundtable on taxation and climate change, Ms. Yellen’s counterparts said they appreciate the cooperative spirit of the United States.

Chrystia Freeland, Deputy Prime Minister and Minister of Finance of Canada, said the United States’ return to the table to fight climate change was “welcome” and “transformative.” Mr. Le Maire thanked the Biden administration for joining the Paris Agreement.

“The United States is back,” he said.

Jim Tankersleycontributed to Washington reporting andLiz Alderman Contribution to the report from Paris.


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