The Group of Seven largest economies is one step closer to answering the call made a few months ago by Janet Yellen, Joe Biden’s Treasury Secretary, and securing an agreement on a global minimum tax on the world’s 100 largest companies.
Reuters reports that negotiations are well under way, so it looks like the deal could be sealed as early as this Friday.
If this happens, the OECD will have very little room to refuse this new tax mechanism and will be forced to turn this agreement between the world’s richest people into a global treaty.
The negotiations have accelerated after the US last week reduced its minimum tax proposal from 21% to an effective rate of 15% in order to achieve international support.
Opposing Washington are London and Paris, for whom tax sovereignty and the nationalization of taxes are core constitutional principles.
Daniele Franco, Italy’s finance minister, who alongside Germany is the European voice of defense, and current leader of the G20, on Friday praised the American diplomatic move: “it is good to have measures closer to reality, which thus become an important step towards global tax reform.”
