On Thursday, global authorities celebrated the US government’s announcement with the Organization for Economic Co-operation and Development (OECD) of a global minimum corporate tax of 15%. At times, US Treasury Secretary Janet Yellen called it a “historic day for economic diplomacy” and is fighting a years-long race with countries vying for who cuts corporate tax rates the most, she wrote on Twitter.
“No one has won this race. Low tax rates have not only been able to attract new business, but have also deprived states of funding important investments such as infrastructure, education and efforts to combat the pandemic,” Yellen said. The minister noted that more than 90% of global GDP is covered by the 130-nation agreement, and that the United States will now be able to compete in a better position.
French President Emmanuel Macron has said that fair taxation of multinational companies has been one of his government’s pursuits in recent years. Addressing the proposal first within the framework of the G7, the Frenchman wrote on Twitter that “we are no longer seven countries, but 130 countries coordinated by the Organization for Economic Cooperation and Development committed to a global minimum of at least 15%.”
British Chancellor of the Exchequer Rishi Sunak noted that we in the G7 “have made a historic deal for the multinational tech giants to pay the right taxes in the right countries”. “Including the entire G20, marking another step in our mission to reform global taxation,” now 130 countries around the world wrote on Twitter.
J Pedro Snchez, head of the Spanish government, stated that in the country it has always been recognized that “the future is being built with a society that leaves no one behind”, and called the declaration “great social progress”.
The European Commissioner for the Economy, Paolo Gentiloni, wrote that “a historic step has been taken today towards a more fair taxation of multinational corporations.” The Italian indicated on Twitter that he was confident that the G20 “will support this unprecedented agreement next weekend in Venice,” where the group’s meeting with economic authorities will take place.
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Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
