US Proposal for Global Minimum Tax , on Corporations, Finds Support From 130 Nations.
The agreement over a
global minimum tax (GMT) was announced
by U.S. Treasury Secretary Janet Yellen on July 1.
A GMT would force a corporation
to pay taxes to their
primary nation of business.
rather than where it has set
up a shell headquarters.
For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs
in response, Janet Yellen, U.S. Treasury Secretary, via CNBC.
The result was a global race to the bottom: Who could lower their corporate rate further and faster?, Janet Yellen, U.S. Treasury Secretary, via CNBC.
Yellen was adamant that
"no nation has won this race.".
Today’s agreement by 130 countries representing more than 90 percent of global GDP is a clear sign: the race to the bottom is one step closer to coming to an end, Janet Yellen, U.S. Treasury Secretary, via CNBC.
A specific tax percentage
has not yet been announced.
The agreement comes as part of President Joe Biden's
emphasis on “a foreign policy for the middle class,”.
which aims to place the American working class —
rather than the wealthiest Americans — as the focus
of all aspects of U.S. foreign policy