President’s management Joe Biden It has proposed, through the Treasury Department, to its partners in the Organization for Economic Cooperation and Development (OECD) a global corporate tax of at least 15%, on its partners inOrganization for Economic Cooperation and DevelopmentOrganization for Economic Cooperation and Development. However, the proportion is lower than the 21% that would have been thought to be proposed. 15% is considered a break-in, after which “more ambitious” efforts can be made. Moreover, the rate to stop the race could be “raised” to the lowest level in the past 30 years.
Eurogroup and Ecofin in Lisbon/ France e Germany we think that US proposal for 15% reform, Instead of 21% as originally assumed, A global minimum tax on multinationals marks a turning point for a speedy deal in the OECD and the G20. Respectively, the French Minister of Economy Bruno the mayor And the German minister Olaf Scholes They indicated their full readiness to end the “game”. For the French minister, the US proposal is “a good compromise: the question is not the number (in and of itself) but.” We have a political agreement no later than the G20 meeting in Italy in July. “. For the German colleague, this is “the best opportunity to introduce tax reform at the global level in order to counter the tax race to the bottom.” Basically to reduce unfair competition between companies and states.
The negotiations that the United States promoted withOrganization for Economic Cooperation and Development It aims to achieve tax harmonization between countries with regard to corporate profits. All with the aim of preventing them from escaping to tax havens like the Bahamas or Ireland. Several multinational corporations reside in Ireland, which pay A. A rate of 12.5%, while the proportion of neighboring countries such as France and Germany is 21%.
The ultimate goal is to increase the contribution of tech giants to their countries. The first millionaire was targeted, Jeff Bezos of Amazon who was repeatedly accused by Joe Biden of evading tax liabilities in his country thanks to the tax benefits of other countries.
Of course, Biden’s move deeply worries “financially good” countries because it will not become more attractive. The Democratic government asserted that the global corporate tax “zero” sparked a race to the bottom of corporate rates, limiting countries’ ability to raise revenues to make the necessary investments. The Organization for Economic Cooperation and Development hopes to reach a global pre-agreement at the G20 Financial Summit on July 9-10. The final agreement is expected to be drawn up at the end of October.
The proposal received strong support from Janet Yellen, the powerful US Treasury Secretary Who, in this regard, said repeatedly that “it is important to ensure that governments have stable tax systems that collect sufficient income and that all citizens share the government’s financial burden equally.”
Domestically, Biden has suggested raising the corporate tax From the current 21%, daughter of Trump’s 2017 tax reform, to 28%, although more moderate Democrats agree more than 25%. With such high revenues, Biden wants to partially finance his mega infrastructure project and above all end what everyone considers an unethical and financially wrong approach to all countries.