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. They claimed that this would stop a race to the bottom on corporate tax rates. Despite the pressures from Yellen and European Union officials, Ireland has not wavered in its opposition. The deadline is in October.
Donohoe said that Ireland was still some bit away from joining the Organization for Economic Cooperation and Development (OECD) tax agreement. He is waiting to see whether the divided U.S. Congress will accept the Biden administration’s proposed tax increases. Yellen, during a call with Donohoe, expressed appreciation for Ireland’s participation in the OECD tax reform talks. The Treasury said that the two ministers agreed to keep in close communication on the issue. Adding to this the treasury stated that Secretary Yellen emphasized the goal of stabilizing the international tax system. He also insisted in stopping the race to the bottom through this once in a generation opportunity offered by the OECD Inclusive Framework.