130 Countries Agree To Biden-Backed 15% Global Minimum Tax

Treasury Secretary Janet Yellen and the Organization for Economic Cooperation and Development (OECD) announced Thursday that 130 countries, including Switzerland, China, and India, have agreed to support a global minimum corporate tax rate of at least 15%. The Biden Administration has proposed major tax hikes on corporations to fund infrastructure and other investments.

On June 23, 2021, Treasury Secretary Janet Yellen will be sworn in.
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Members of the OECD and all G20 members are among the 130 countries that have agreed to the framework.

The OECD said in a statement that the framework “updates important components of the century-old international tax system, which is no longer fit for purpose in a globalized and digitalized 21st century economy.”

The OECD anticipates the proposal to be finalized in October and estimates that it will generate an additional $150 billion in tax revenue per year.

90% of the time According to the OECD, that is the proportion of global GDP accounted for by the 130 countries that signed up to the plan.
In order to avoid what Yellen commonly refers to as a “race to the bottom,” the Biden Administration has pushed for a global corporate minimum tax rate. As governments strive to attract more international investment, they cut worldwide tax rates in order to create the most beneficial environment for businesses, resulting in fewer tax revenues for everyone. Parallel attempts have been made within the OECD and the G7 to develop new mechanisms to ensure that the world’s top firms cannot avoid paying taxes by transferring earnings offshore. The G7 finance ministers also agreed last month on a global minimum corporate tax rate of 15%.
In a statement, Yellen stated, “Today is a historic day for economic diplomacy.” “Now is our opportunity to create a global and domestic tax structure that allows American workers and businesses to compete and win in the global economy.”
130 countries and jurisdictions have signed on to a daring new international tax reform framework (OECD)
Amid Biden’s Infrastructure Blitz, Yellen pushes for a global minimum tax. (Forbes)
G7 Finance Ministers Agree To A Minimum Global Tax Rate Of 15% For Multinational Corporations (Forbes)
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