G7 Tax Deal Sparks Change: Treasury Appeals to Republicans

U.S. Treasury Secretary Scott Bessent has appealed to Congressional Republicans to remove the Section 899 tax proposal from their tax legislation. This appeal comes after Washington secured an accord with the Group of Seven (G7) industrial nations.

The agreement, which supports the OECD Global Tax Deal, exempts U.S. companies from a 15% global corporate minimum tax under 'Pillar 2.' Bessent's statement on social media highlighted the importance of this alignment for American interests. The initiative now requires cooperation for implementation within the OECD-G20 framework.

This development might facilitate Donald Trump's move to withdraw the U.S. from the OECD tax deal formulated under the Biden administration. Section 899 had faced resistance from Republicans and U.S. businesses, and its removal may occur as part of a broader fiscal package vote.

(With inputs from agencies.)