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Soph0571

(9,685 posts)
Sun Jun 6, 2021, 08:36 AM Jun 2021

Why the G7 agreement on a global corporate tax rate is a defining moment

In a major victory for both the Biden administration and the G7, global finance ministers agreed in London today (Saturday) to a minimum global corporate tax rate of at least 15 per cent.

British Chancellor Rishi Sunak, who has pledged to increase the UK rate from 19 per cent to 25 per cent by 2023, called the deal a “historic agreement.” Germany hailed it as “good news for justice and fiscal solidarity.”

The agreement is a crucial political and moral victory. Joe Biden and US Treasury Secretary Janet Yellen emphasised far in advance that they wanted such a deal to halt the global “race to the bottom” on taxation that has prevailed since the Reaganite 1980s. That the G7 finance achieved this aim – something Japan had warned in advance was unlikely – is a triumph for the Biden team, which wants to raise the US corporate tax rate from 21 per cent to 28 per cent to help fund its ambitious $2trn infrastructure programme.
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G7 finance ministers also agreed that beneficial ownership registries – a requirement for corporations to disclose who actually owns and benefits from their activities – are essential to tackle illicit finance, and vowed to implement and strengthen them. This, too, is a win for the Biden administration, which has pledged to lead the fight against kleptocracy and corruption.

[link:https://www.newstatesman.com/politics/economy/2021/06/why-g7-agreement-global-corporate-tax-rate-defining-moment|]
Emphasis mine.

This is a huge deal in two ways - multi-nationals are at real risk of having to actually pay taxes... about time.
But the biggest deal for me on this - Welcome back to the world stage in a real and meaningful way America! It was a long four years!

Huzzah!
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