Republicans Oppose G7 Minimum Corporate Tax Deal

Recent media reports have pointed to growing opposition, within Republicans in the United States Senate, against the recent deal that the G7 summit announced to establish an agreement among major economies on a minimum corporate tax rate.

The move comes shortly after the Republican Party came against the proposal of President Joe Biden to raise taxes to fund his plans to expand spending on infrastructure projects.

The new disagreement over the new G7 agreement comes with different points of view whether such as agreement constitutes an international treaty that needs a two-thirds majority within the Senate to be passed or if it is possible to pass it by a simple majority, thus allowing Democrats to pass it despite the Republican disapproval.

The U.S. Secretary of the Treasury, Janet Yellen, recently hailed the agreement and the significant, unprecedented commitment towards ensuring that large multinational corporations pay their fair share of taxes, especially tech giants.

Republican Senator Pat Toomey voiced his opposition of the basis that the new deal might put the U.S. economy under the risk of tax revenues going to other countries, he was cited by Reuters as saying.

Recently, Biden offered reversing his proposal to raising the income tax rate to 28% and replace it with a minimum rate of 15%. In a move that was seen as reaching across the aisle to try and reach a compromise with the Republicans.