READOUT: Secretary of the Treasury Janet L. Yellen’s Virtual Meeting with G7 Finance Ministers

WASHINGTON – Earlier today, U.S. Secretary of the Treasury Janet L. Yellen participated in a virtual meeting with the G7 finance ministers. Following the historic agreement by the G7 in June – which was later supported by 134 countries representing more than 90% of the world’s GDP – to rewrite the international tax rules to impose a global minimum tax on corporate foreign earnings, Secretary Yellen today expressed support for ongoing efforts to improve the international tax system and the importance of swift implementation of the new system. The new international tax system would meet the needs of the 21st century global economy by providing governments with resources to invest in their workers and economies, as well as improving the standing of U.S. businesses by leveling the playing field in which they compete.

Secretary Yellen expressed how the Biden-Harris Administration is pleased with the progress the U.S. Congress is making to strengthen the U.S. international tax rules, with a committee markup on the reconciliation legislation beginning today. The Secretary noted the generational importance for Congress to seize this historic opportunity to end the race to the bottom by enacting a U.S. minimum tax rate on foreign earnings of at least 21 percent on a per-country basis. Together with the global deal, this policy will generate funding for a sustained increase in critical investments in education, research, and clean energy -- which will improve the lives of U.S. citizens and help the U.S. remain the best place in the world to do business. 

Further, Secretary Yellen emphasized her support for continued G7 efforts to enhance support for low-income countries to mitigate further divergence in the global economic recovery.  To this end, she noted the significance of the recent allocation of Special Drawing Rights (SDRs) by the International Monetary Fund and urged major economies to lend their SDRs to further support vulnerable countries.