It was announced early Thursday that a group of 130 nations has come to an agreement to a worldwide tax minimum on corporations. This comes as part of an agreement on a global tax overhaul as it pertains to international tax rules.
Offcials have agreed to implement a brand new tax plan that would have taxes be linked to where business is being conducted rather than where they are headquartered. This will make it so that businesses will not be able to look for low-tax jurisdictions and therefore being able to abstain from paying for certain taxes.
There is no official tax rate that the Global Minimum Tax (GMT) will be set at. However, the Biden administration is looking to push for at 15%. This will most likely be discussed at meeting in Venice, Italy later this month which will consist of G-20 finance ministers and central bank governors.
A big point that this deal is aiming to convey is to show how domestic and foreign policy can meet in the middle. This is especially important to show how traditional liberal and conservative approaches can combine to come to a compromise.
Christinawilkie. (2021, July 01). 130 nations agree to support U.S. proposal for global minimum tax on corporations. Retrieved July 02, 2021, from https://www.cnbc.com/2021/07/01/nations-agree-to-support-us-proposal-for-global-minimum-tax-on-corporations.html