G7 reaches agreement on global minimum tax

G7 reaches agreement on global minimum tax
PD

[Ed. – Recall that “Biden” is pushing the global minimum tax — which proponents and media refer to as an antidote to a “race to the bottom” on national tax rates, as if that’s a bad thing.  The balance of the NYT article acknowledges that many nations have no interest in signing on to the agreement.  Next step, sell it to the G20.  We can hope it dies there.]

Finance leaders from the Group of 7 countries agreed to back a new global minimum tax rate of at least 15 percent that companies would have to pay regardless of where they locate their headquarters.

The agreement would also impose an additional tax on some of the largest multinational companies, potentially forcing technology giants like Amazon, Facebook and Google as well as other big global businesses to pay taxes to countries based on where their goods or services are sold, regardless of whether they have a physical presence in that nation.

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Garnering wider support will not be easy. Ireland, which has a tax rate of 12.5 percent, has come out against the global minimum tax, arguing that it would be disruptive to its economic model. Some major countries such as China have been quietly tracking the proceedings but are considered unlikely to buy in. …

The Biden administration has been particularly eager to reach an agreement because a global minimum tax is closely tied to its plans to raise the corporate tax rate in the United States to 28 percent from 21 percent to help pay for the president’s infrastructure proposal.

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