Global Tax On Corporations: 130 Nations Agree To Back Biden Administration's Proposal
The Biden administration on Thursday received the backing of 130 countries for a global minimum tax on corporations. The move paves the way for the biggest change in international taxation in a century.
The governments are seeking to pass laws that will tax corporations 15% in each nation they operate in, which will reduce opportunities to avoid paying taxes. Such a move is intended to “end a race to the bottom,” Treasury Secretary Janet Yellen said Thursday.
Today 130 countries making up more than 90% of the world’s economy endorsed @POTUS proposal for a strong global minimum tax. The United States is rallying the world to make big corporations pay their fair share so we can deliver for middle class families at home and abroad.
— Jake Sullivan (@JakeSullivan46) July 1, 2021
Many governments have been outspoken about taxing companies like Apple and Amazon. The Organization for Economic Cooperation and Development says governments lose anywhere between $100 billion to $240 billion a year because of tax avoidance.
“Today marks an important step in moving the global economy forward to be more equitable for middle-class families in the United States and around the world,” President Biden said.
China and India have also agreed to join the coalition after previously holding reservations about the newly proposed tax.
World leaders hope to end a brewing trade war over the taxation of major U.S.-based tech companies. A deal is expected to be finalized in October.
Much of the expected revenue would go to emerging markets like India. Revenue may also go to France and Germany, two countries that have warned against tax avoidance.
Glad to see @SecYellen leading an agreement by 130 countries to ensure giant corporations pay their fair share in US taxes when they do business here – now let’s pass legislation to make it happen. https://t.co/CktDq9Jxqv
— Elizabeth Warren (@SenWarren) July 1, 2021
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