The Secretary of the Treasury of the United States, Janet Yellen, reported that the Government will exhaust its cash reserves by October 18, for which it has urged Congress to approve the increase in the debt ceiling to avoid a possible default on debt.

“We estimate that the Treasury will probably exhaust its extraordinary measures if Congress has not acted to raise or suspend the debt limit by October 18,” Yellen said in a letter sent to the president of the United States House of Representatives, Nancy Pelosi.

“At that point, we hope that the Treasury will be left with very limited resources that will be quickly depleted. It is uncertain that we can continue to meet all the nation’s commitments after that date,” added the Secretary of the Treasury.

Since 1969, the United States Congress has raised the Government’s debt ceiling on 78 occasions permanently, temporarily, or by revising the definition of debt.

Yellen, on the other hand, warned that, according to previous moments of paralysis due to the debt limit, “waiting until the last minute can cause serious damage to the confidence of companies and consumers, raise the costs of borrowing for taxpayers and negatively impact the US credit rating.”

K. Tovar

Source: Expansión

La entrada US announces that its cash reserves will be depleted soon apareció primero en Bitfinance.

The United States Congress can approve in the spring of 2022 one of the pillars of the global tax agreement agreed within the framework of the OECD and endorsed by the G20 in Venice. This was stated by the US Secretary of the Treasury, Janet Yellen,  at a press conference held on Sunday, July 11th, during her visit to that nation.

The finance ministers and governors of the G20  central banks have underpinned this system that is based on two pillars: allocating a percentage of the profits of companies to certain jurisdictions so that they pay taxes where they operate, even if they do not have a physical presence. The second refers to the application of a minimum corporate tax, at least 15 %, to companies with a turnover in the order of 750 million euros, about 890 million dollars.

The US Congress must pass the agreement before the nation can join the pact. But according to the Treasury Secretary’s statements, the chamber could approve the first pillar in the spring of 2022, while the second could be endorsed this year.

Yellen stressed that several countries will adopt the agreement on international taxation and informed that he will meet, on Monday, with Ireland, Estonia and Hungary, in order to explain the importance of their accession.

The Secretary of the Treasury indicated “now we are all the countries competing on the basis of economic fundamentals, with our economic strengths, our capacities for innovation and the robustness of our economic institutions.” She added that the pact will provide the resources to invest in infrastructure, education, and research and development.

M. Rodríguez

Source: eldinero.com.do

La entrada Janet Yellen seeks the approval of the global fiscal pact apareció primero en Bitfinance.