Biden administration hails international agreement on 15% minimum corporate tax

The Biden administration celebrated an international agreement among 130 countries on Friday to accept a minimum corporate tax rate of 15%. The idea is to prevent the “race to the bottom” that encourages companies to move abroad.

President Donald Trump and Republicans had included a provision called “Global Low Intangible Tax Income” (GILTI) in the Tax Cuts and Jobs Act of 2017, which is intended to prevent American companies from fleeing to tax havens. It required US companies to pay a tax rate of 10.5% on profits made in a foreign country if that country’s tax rate was too low.

But Biden and Treasury Secretary Janet Yellen have pushed for a global agreement on a minimum corporate tax rate. Biology Negotiations that began years ago. Their goal was to increase foreign corporate taxes, so that congressional Democrats could raise taxes on American corporations without fear of being chased away to low-tax countries.

Although nearly 130 countries already have agreed To the Biden administration’s proposal several months ago, there were several strongholds, notably Ireland, a US corporate tax haven, which agreed Thursday, he raised the corporate tax rate from 12.5% ​​to 15%. Some critics say the 2023 implementation deadline is too early; The deal requires the United States to raise its taxes on overseas profits, which could face political opposition in Congress. Aharon Say That the deal “has no teeth,” given that there are still many countries that have refused to join the deal and could entice companies with lower rates.

The amount of money lost to governments around the world each year due to tax havens is estimated to be just $245 billion — a small fraction of the amount the Biden administration wants Congress to raise for trillions of dollars in new spending.

However, the White House applauded the agreement on Friday, with press secretary Jen Psaki announcing The agreement would “ultimately contribute to the playing field for American workers and taxpayers” by ensuring that “the winning companies pay their fair share and provide governments with the resources to invest in their workers and their economies.”

President Biden and his wife avoid it Pay their “fair share” for several years by filing tax returns as an S corporation rather than as an individual source of income.

Joel Pollack is Breitbart News’ traveling editor and host Breitbart News Sunday At Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET (4 p.m. to 7 p.m. PT). He is the author of the last e-book, Neither Free nor Fair: The 2020 US Presidential Election. his last book, red november, tells the story of the 2020 Democratic presidential primary from a conservative perspective. He was awarded the 2018 Robert Novak Alumni Fellowship for Journalism. Follow him on Twitter at Tweet embed.

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