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White House says G7 leaders will endorse proposed 15% global minimum corporate tax

Published 06/11/2021, 05:49 PM
Updated 06/11/2021, 06:36 PM
© Reuters. U.S. President Joe Biden walks with Italian Prime Minister Mario Draghi, France's President Emmanuel Macron and European Commission President Ursula von der Leyen after posing for the G-7 family photo with guests at the G-7 summit, in Carbis Bay, Cornwall

By Nandita Bose and Andrea Shalal

WASHINGTON (Reuters) - G7 leaders meeting in Britain will endorse U.S. President Joe Biden's proposal for global minimum tax of at least 15% on corporations, White House national security adviser Jake Sullivan said on Twitter on Friday.

The U.S. Treasury in May proposed a global minimum corporate tax of at least 15% to try to end a downward spiral of corporate tax rates.

"America is rallying the world to make big multinational corporations pay their fair share so we can invest in our middle class at home," Sullivan tweeted.

By supporting the move, major economies are aiming to discourage multinationals from shifting profits - and tax revenues - to low-tax countries regardless of where their sales are made.

Current global tax rules date back to the 1920s and struggle with multinational tech giants that sell services remotely and attribute much of their profits to intellectual property held in low-tax jurisdictions.

U.S. tech giants such as Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN) could benefit from the agreement to create a global minimum 15% corporate tax rate if the final deal also scraps increasingly popular digital services taxes, according to industry lobbyists. https://reut.rs/359z1u1

The decision had been expected after G7 finance officials backed a tax rate of at least 15% during a meeting on June 5. The U.S. Treasury has said the G7's endorsement will provide momentum for advancing negotiations towards a broader G20 finance meeting in July in Italy.

© Reuters. U.S. President Joe Biden walks with Italian Prime Minister Mario Draghi, France's President Emmanuel Macron and European Commission President Ursula von der Leyen after posing for the G-7 family photo with guests at the G-7 summit, in Carbis Bay, Cornwall, Britain June 11, 2021. Patrick Semansky/Pool via REUTERS

U.S. Treasury Secretary Janet Yellen and her counterparts from Germany, Indonesia, Mexico, and South Africa backed the move in a column published Wednesday by the Washington Post.

They said they were confident that the global minimum tax rate could ultimately be pushed higher than 15%, citing "the ambition of the discussions thus far."

Latest comments

All these G7 this and that krab.... if they don't consult with China, all these are meaningless... China already told them in Alaska, there is only one world body, and that is the UN...
yeah, by the time this is implemented Biden will out of the WH and some1 will Exec Order this out of existence in a flash. Same with the green new deal fanaticism aswell. All other nations will be left sinking and the US will be laughing at all of them for having been so gullible.
Cool story bro
about time
"minimum corporate tax of at least 15%". Nice piece of journalism at Reuters
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