The deal removes offshore incentives for American companies.
World leaders meeting in Rome on Sunday for the G20 summit announced their endorsement of global minimum tax. The leaders of the world’s 20 biggest economies say they would have rules in force in 2023 for a minimum global corporate tax of 15%.
The global minimum tax seeks to block corporations from moving jobs or profits overseas in order to avoid paying taxes. President Biden and his administration promoted the agreement over the last several months.
Treasury Secretary Janet Yellen said the “historic” endorsement of the minimum tax would help U.S. businesses and workers, even though the deal also means that many American-based companies, like the largest internet organizations, will be paying more tax than now.
“This deal will remake the global economy into a more prosperous place for American businesses and workers,” she said in a statement.
“It’s a game-changer for American workers, taxpayers, and businesses,” a senior administration official said. “And in our judgment, this is more than just a tax deal; it’s a reshaping of the rules of the global economy.”
As the Lord Leads, Pray with Us…
- For U.S. officials as the global minimum corporate tax is implemented.
- For American businesses and workers as the new tax goes into effect.
- For the groups that will write the detailed rules that will govern the agreement made by the G20 leaders.
Sources: Reuters, The Hill
