G7 leaders agree to support Biden’s proposal for a global minimum tax of 15%

White House National Security Adviser Jake Sullivan announced tonight that the leaders of the Group of Seven nations have agreed to support US President Joe Biden’s proposal for a global minimum tax of 15%.

“The leaders of the G7 will support[Biden’s]proposal for a global minimum tax of at least 15%. The United States is upsetting the world until multinational companies pay their fair share so we can invest in our middle class back home,” Sullivan said via Twitter.

The G7 also agreed that big companies should pay taxes wherever they generate sales, not just where they have a physical presence.

In this regard, the UK’s Finance Minister, Rishi Sunak, signed the agreement through a video posted on Twitter, in which he said the finance ministers of the Group of Seven major industrial countries – in which Canada, France, Germany, Italy and Japan participate. , UK and US – “They reached a historic agreement to reform the global tax system to fit the global digital age and, most importantly, ensure that it is fair for the right companies to pay the right taxes in the right places.” .

The deal was sealed during a meeting of G7 finance ministers in London, attended by US Treasury Secretary Janet Yellen, who requested support for the administration’s efforts to rewrite international financial rules and discourage US companies from posting profits abroad.

Yellen said the deal was a “significant and unprecedented commitment” by the world’s richest economies, aimed at preventing companies from avoiding taxes by shifting their profits abroad.

“The G7 finance ministers have made an important and unprecedented commitment today that provides tremendous impetus to achieving a strong global minimum tax rate of at least 15%,” Yellen said in the statement.

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“The global minimum tax would end the race to the bottom in corporate taxation and ensure fairness for the middle class and workers in the United States and around the world,” he said.

He added that the tax would contribute to “creating the playing field for companies and encouraging countries to compete on positive grounds such as educating and training our workforce and investing in research and development and infrastructure.”

A CNN article in London’s coverage of the event reported that tech giants such as Apple, Facebook and Google are being targeted by the deal.

“This meeting provides a great opportunity to promote the global recovery,” British Prime Minister Boris Johnson was quoted by the French news agency AFP as saying at the opening of the meeting, before the start of closed discussions.

US President Joe Biden said the summit represented his country’s “return” to multilateralism after the Donald Trump years.

“I look forward to working with our allies and partners to build a more just and inclusive global economy,” the US president tweeted, seeking to form a united bloc against Russia and China.

In addition, the meeting will focus on another key aspect in times of the coronavirus: a more equitable distribution of vaccines.

The British government said leaders were expected to agree to provide “at least one billion doses” and increase production capacity, with the goal of “ending the pandemic by 2022”.

The US has already pledged to donate 500 million doses of Pfizer/BioNTech and the UK 100 million surplus vaccines.

(Tillam)

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