One critic of the agreement said that “by settling for anything less than a 25% tax rate, the G7 is telling their citizens and the world that they’re willing to keep the race to the bottom alive and kicking.”
By Jake Johnson, staff writer for Common Dreams. Published 6-5-2021
Representatives from seven of the world’s wealthiest nations reached an agreement on Saturday to support a global minimum tax rate of at least 15% for multinational companies, a move aimed at curbing the use of tax havens and ending the decades-long race to the bottom on corporate taxation.
The deal struck by the U.S., Japan, Germany, France, the U.K., Italy, and Canada still faces a long road to implementation, but Saturday’s development marks substantial progress toward a global accord that could allow governments to raise revenue from corporate giants notorious for shifting operations and profits overseas to avoid taxes. Continue reading