Nine out of the 139 countries have moved to reject Biden administration’s “global minimum tax,” which includes a global minimum tax rate of 15 percent on multinational corporations.
According to the White House, the purpose of the global minimum tax rate is to end the “decades-long race to the bottom that pushes nations to compete over who can offer the lowest tax rate to large corporations at the expense of protecting workers, investing in infrastructure, and growing the middle class.”
130 out of the 139 countries have signed the proposed deal- leaving Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria, Sri Lanka, St. Vincent, Peru, and the Grenadines to be the only countries to oppose, according to Fox Business. Finance Minister of Ireland Paschal Donohoe, whose country has a 12.5 corporate tax rate, said he will not be joining the deal but will keep searching for an outcome he can support, according to The Epoch Times.
“I was not in a position to join the consensus on the agreement and specifically a global minimum effective tax rate of ‘at least 15 percent’ today,” Donohoe claimed. “I have expressed Ireland’s reservation, but remain committed to the process and aim to find an outcome that Ireland can yet support.”
Finance Minister of Hungary Mihaly Varga also dismissed the global minimum tax by saying, “The global minimum tax would obstruct economic growth, the planned 15 percent tax rate is too high, and it shouldn’t be levied on real economic activity,” The Epoch Times further reports, Treasury Secretary Janet Yellen will push a global minimum corporate tax rate above 15 percent to G20 counterparts this week.
ARTICLE: LAURA RAMIREZ
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: FRANCE24.COM
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