GOP opposition to minimum corporate tax could hinder global effort against tax havens
The finance ministers from the Group of Seven nations agreed over the weekend to support a global minimum tax rate of 15 percent on multinational corporations and give countries more authority to tax wealthy digital companies like Apple, Facebook, and Google that contribute little in taxes to some countries where they do business.
U.S. Treasury Secretary Janet Yellen and her G-7 peers hailed the agreement as a return to multilateralism and a blow against tax havens. Yellen said the G-7 took "significant steps" to end a "race to the bottom" on corporate taxes and "ensure fairness for the middle class and working people in the U.S. and around the world."
The next step for President Biden and his global minimum tax allies is to get buy-in from the Group of 20 finance ministers when they meet in Vienna in early July, then a group of 135 countries in the so-called Inclusive Framework.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"We'll have to convince the other great powers, especially the Asian ones — I am thinking in particular of China," French Finance Minister Bruno Le Maire said over the weekend. "Let's face it, it's going to be a tough fight. I am optimistic that we will win it because the G-7 is giving us extremely powerful political momentum."
Many governments are "likely to wait and see what others, especially a divided U.S. Congress, will do," The Wall Street Journal reports. "In countries with parliamentary systems, governments can quickly deliver on pledges, turning them into local laws and regulations. In the U.S., however, a slim Democratic majority in the House, an evenly split Senate, anti-tax Republicans, and procedural hurdles complicate passage. Other countries may be reluctant to change their laws or remove taxes that hit U.S.-based tech companies without seeing Congress move first."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Chicken with Steph's spice
The Week Recommends This Caribbean-inspired recipe is mouthwateringly delicious
By The Week UK Published
-
A peaceful seaside village in Turkey
The Week Recommends Çıralı has been spared the 'scourge' of all-inclusive resort development
By The Week UK Published
-
Tax plans spell trouble in the North Sea
Talking Point Labour’s tax plans are whipping up a storm. Are the worries of opponents justified?
By The Week UK Published
-
Luxe landlords: High-end brands are moving into real estate
Under the Radar Luxury brands are investing in both commercial and residential property.
By Justin Klawans, The Week US Published
-
Can Starbucks' new CEO revive the company?
Today's Big Question Brian Niccol has been the CEO of Chipotle since 2018 but is now moving to the coffee chain
By Justin Klawans, The Week US Published
-
US inflation drops below 3%, teeing up rate cuts
Speed Read This solidifies expectations that the Federal Reserve will finally cut interest rates in September
By Peter Weber, The Week US Published
-
Google loses antitrust suit, declared 'monopolist'
Speed Read A federal court has ruled that Google illegally dominated the internet search industry
By Rafi Schwartz, The Week US Published
-
The inconvenience store: Why are shops locking up even more merchandise?
Under the Radar You may have noticed a surge in items stowed behind security glass
By Anya Jaremko-Greenwold, The Week US Published
-
It's not your imagination — restaurant reservations are becoming harder to get
In the Spotlight Bots, scalpers and even credit card companies are making reservations a rare commodity
By Justin Klawans, The Week US Published
-
A massive copper shortage is on the horizon
Under the Radar It is estimated that mines will only meet 80% of copper needs by 2030
By Justin Klawans, The Week US Published
-
Epoch Times CFO charged with money laundering
Speed Read Weidong "Bill" Guan stands accused of laundering $67 million
By Peter Weber, The Week US Published