The White House believes countries need to move together to prevent firms from taking advantage of weak tax rules
President Biden on Thursday celebrated a victory in his drive to make corporations pay a larger share of the cost of government, as 130 countries endorsed a blueprint for a global minimum tax on giant businesses and pledged to work for final approval by the end of October.
The agreement announced by the Organization for Economic Cooperation and Development (OECD) in Paris showcased the president’s preference for patient diplomacy rather than the unilateral moves favored by his predecessor.
Potentially the most significant change in global tax rules in 100 years, the accord is designed to stop countries from competing to lure corporations by offering lower tax rates and to help governments fund their operations at a time of soaring pandemic-related expenses. Biden administration officials also describe the tax plan as a partial remedy for the offshoring of manufacturing jobs that have hollowed out American factory towns and fueled populist resentments. Continue reading.