Bloomberg Tax Quotes Peter Barnes on Yellen's Global Tax Plan

For Treasury Secretary Janet Yellen, there’s one stinging omission from the compromise legislation agreed to this week by Senator Joe Manchin and Majority Leader Chuck Schumer.

Tax changes included in the bill fail to bring the US in line with a global deal championed by Yellen and backed last year by almost 140 countries, which aims to reshape the way multinational companies are taxed around the world.

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Peter Barnes, a tax specialist at the Washington law firm Caplin & Drysdale, fell somewhere between the Treasury’s positive take and Kirkegaard’s reaction.

“I think it is a blow, but I don’t view it as cataclysmic,” he said.

Barnes said he expects that, as other countries adopt the global minimum tax, US-based companies would lobby Congress to bring the US fully into compliance.

That’s because American companies would then be subject to more taxes abroad or even to double-taxation, and the government would lose out on revenue.

“As the rest of the world moves forward, the US Congress will hear from companies, and will move forward, as well,” he said.

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