After a push from the Biden administration, dozens of countries have agreed to a minimum corporate tax rate. Some believe other countries raising taxes will make it easer for America to do so.
Summary
A deal on a global minimum corporate tax rate was announced yesterday, with more than 130 countries signing on.
- The agreement, announced by the Organization for Economic Cooperation Development, would set a minimum 15% tax on corporate earnings.
- Facebook, recently in hot water for a host of issues, sought to prove its progressive bona fides by praising the deal and saying it will be paying more in taxes under the agreement.
- Until this week, the deal was effectively held up by Ireland, long considered a corporate-friendly country with a tax rate lower than 15%.
- Not surprisingly, some groups like Oxfam criticized the deal, saying there are too many exemptions.
- The New York Times characterized corporations’ efforts to minimize their tax bill as “depriving nations of money they need to build new infrastructure and combat global health crises.”
- CNN noted the deal not only sets a rate, but reforms how taxes are collected and paid so that companies will pay taxes “where they generate sales and profits.”
- BBC largely praised the agreement in its reporting, saying it “ensures big companies pay a fairer share of tax.”
- The Daily Wire highlighted Treasury Secretary Janet Yellen’s celebration of the new global tax scheme, who said it will lead to “decades of increased prosperity for both America and the world.”
- Fox Business interviewed conservative economist Stephen Moore who criticized the deal, calling it a “new low point.”
- The editorial board of the Wall Street Journal blasted the OECD’s announcement, saying it was only possible by the Biden administration’s efforts to hike corporate taxes in America.
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© Dallas Gerber, 2021
