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Global Minimum Tax Pact Could Undermine Biden Domestic Agenda

March 25, 2022, 8:45 AM

A deal to rewrite global tax rules could erode key tax breaks in President Joe Biden‘s economic agenda as lawmakers try to revive the administration’s climate and social spending plan.

The House Ways and Means Committee—responsible for drafting much of that agenda—first recognized and flagged the potential contradiction to Treasury in January, after nearly 140 countries backed the global deal in October and after a late December change to the formula used to calculate enforcement of the new global minimum tax agreement, according to several sources familiar with the situation who asked for anonymity to speak freely.