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G20 world leaders have endorsed a global minimum tax on corporations as part of an agreement on new international tax rules.
The move by the leaders of the world’s biggest economies is a step toward building more fairness amid the surging revenues of some multinational businesses.
US treasury secretary Janet L Yellen hailed it as benefiting American businesses and workers.
Back in July, G20 finance ministers agreed on a 15% minimum tax – so its formal endorsement at the summit on Saturday in Rome of the world’s economic powerhouses had been expected.
In a statement, Ms Yellen predicted that the deal on new international tax rules, with a minimum global tax, “will end the damaging race to the bottom on corporate taxation”.
Despite the dealing falling short of US President Joe Biden‘s original call for a 21% minimum tax, he welcomed the decision.
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World leaders gather for G20 ‘family photo’
“Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax,” the president said in a tweet.
“This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.”
Italian Prime Minister Mario Draghi (left) said vaccine inequality was ‘morally unacceptable’
White House officials have claimed the new tax rate would create at least $60bn (£43.8bn) in new revenue a year in the US, which could partially pay for a nearly $3tn (£2.1tn) social services and infrastructure package that Mr Biden is seeking.
On the subject of fairness across the globe,…
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Source : skynews
