Back in March, U.S. Treasury Secretary Janet Yellen said the United States will drop a key provision in the battle for a global minimum corporate tax rate. We were told, an international agreement would be made sometime in Summer.
Just days ago, the United States agreed to a 15% global minimum corporate tax rate for the world.
This 15% number was just pitched to the G7 (Group of Seven), which includes France, Germany, and Italy. Those nations were receptive to this 15% number, and said, it is a good basis for an international deal by July.
“The world is closer than ever before to a global minimum tax,” U.S. National Security Adviser Jake Sullivan said on May 22.
Reuters
The idea, is for the nations of the world to agree on a global standard, a minimum corporate tax rate for all nations.
Nearly 140 countries aim to reach broad agreement this summer to rework rules for taxing multinational groups and big technology companies, such as Alphabet Inc and Facebook Inc.
Reuters
We should note, the 15% number is only a starting point.
The final rate could go even higher than that, according to a Treasury release that said the 15% minimum is a “floor and that discussions should continue to be ambitious and push that rate higher.”
CNBC
So as we can see, the nations of the world continue to work together on new global agreements. While each nation will tax corporations individually, the nations are working together to set the standard for taxation. This is a major step for globalization, and once again shows world leaders continue to work together.
Globalization has been a long road, and will continue to be though we are seeing major leaps and bounds. Nevertheless, the rise of the New World Order will take time, though it continues to unfold before our eyes.