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At the lower house of parliament Bundestag in Berlin, Germany, on June 24, 2021, Finance Minister Olaf Scholz talks after German Chancellor Angela Merkel issued a government announcement on the upcoming European Council meeting. Michele Tantussi/Reuters (Reuters) – WASHINGTON, July 1 (Reuters) – On Thursday, German Finance Minister Olaf Scholz said a global corporate minimum tax accord reached by 130 countries was the biggest step forward in global taxes in decades. “The race to the bottom in competitiveness is gone,” Scholz told reporters during a trip to Washington immediately after the Organization for Economic Cooperation and Development struck an accord. He added that while certain issues needed to be ironed out, the deal represented “colossal progress” and would allow governments to boost infrastructure spending and measures to tackle climate change. Scholz said the 130 countries accounted for 90% of global GDP and highlighted Germany’s and other countries’ significant efforts to guarantee that large technology businesses like Amazon are taxed fairly (AMZN.O). He said the goal was to have financial officials from the Group of 20 major economies back the plan when they meet in Venice on July 9-10, following the Group of Seven advanced economies’ decision in London last month. “We haven’t seen this much development in international taxation in 10, 20, 30 years,” he remarked. “It’s a huge breakthrough that will transform everything,” says the author. The agreement, according to Scholz, will help countries secure additional cash for “critical issues” such as infrastructure, climate change, and social expenditure. Andrea Shalal contributed reporting, and Dan Grebler edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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