US Treasury’s Yellen Urges Irish Finance Minister to Take Global Tax Deal

By Reuters
September 23, 2021 Updated: September 23, 2021

WASHINGTON—U.S. Treasury Secretary Janet Yellen urged Paschal Donohoe, the finance minister of low-tax Ireland, to take a “once in a generation opportunity” for a global deal that would stop a race to the bottom on corporate tax rates, the Treasury said on Wednesday.

Despite pressure from Yellen and European Union officials, Ireland has not wavered in its opposition as an October deadline approaches to finalize a deal for a global minimum tax of at least 15 percent—well above Ireland’s 12.5 percent rate.

Donohoe said on Monday that Ireland was “still some bit away” from joining the Organisation for Economic Cooperation and Development (OECD) tax agreement as he waits to see whether a deeply divided U.S. Congress will accept the Biden administration’s proposed tax increases.

Epoch Times Photo
U.S. Treasury Secretary Janet Yellen (L) meets with Eurogroup President Paschal Donohoe as finance ministers from across the G7 nations meet at Lancaster House in London on June 5, 2021. (Alberto Pezzali/WPA Pool/Getty Images)

Yellen, during a call with Donohoe, “expressed appreciation for Ireland’s constructive participation” in the OECD tax reform talks, and the two ministers agreed to keep in close communication on the issue, the Treasury said in a statement.

“Secretary Yellen emphasized the goal of stabilizing the international tax system and stopping the race to the bottom through this once in a generation opportunity offered by the OECD Inclusive Framework,” the Treasury added.

By David Lawder