Treasury Sec Yellen: Tough Enforcement Mechanism Within OECD Tax Framework

US Treasury Secretary Janet Yellen has defended the OECD framework for global tax reform before the Senate Finance Committee.

• Livestream here: https://www.finance.senate.gov/hearings/the-presid...
• Yellen says that it 'can not be the case' that the America Rescue Plan is the primary cause of inflation in the United States because there is high inflation 'in nearly all developed countries' around the world 'with very different fiscal policies.'
• Yellen: 'Biden inherited an economy with very high unemployment' which looked at risk of lasting a long time and leading to 'a downturn which could match the Great Recession.'
• Yellen: 'The overwhelming risk was that Americans could be scarred by a deep and long recession.'
• In response to the question why won't China stonewall efforts under OECD rules to come into compliance?
• Yellen says that there is a tough enforcement mechanism within the agreement that will allow the US or other countries to collect tax.
• Colin Wilhelm of Bloomberg Tax: "Sec. Yellen making some news on the international tax front during this hearing, now says that Congress must ratify U.S. participation in the OECD global minimum tax deal. Treasury had previously argued that the agreement wouldn't need to go through a standard treaty process."