U.S. Backs 15% Global Minimum Tax to Curb Profit Shifting Overseas

Bloomberg has a better write up: https://www.bloomberg.com/news/articles/2021-04-08/plans-for...

To answer your question, this wouldn't create a new organization to collect a global tax. Instead it would give the IRS the authority to tax American companies (say, Google) an additional amount on their overseas earnings. So, if they paid 13% in Irish tax, but the American tax rate is %21, the IRS could charge them the gap (an additional 8%). This would be true in all countries that sign the agreement.

Obviously tax havens would still exist, but they'd be harder for big multinationals (like American tech giants) to abuse.

This is ladder pulling. Who needs smaller countries competing on fiscal rates when all tech should be registered in Dellaware?

Note how it's a small 15% to start with. If this goes through and all the treaties are in place moving it to 25% should be much easier.

Maybe the US should investigate all the creative ways US corporations pay so little tax anywhere. It's a problem caused by US and US corporation and now they come to provide a solution.

But the way they went about this is disappointing.

There should be a way to solve this that would still allow countries to compete in attracting businesses. They talk as if they want everybody to settle for mediocrity.

> Treasury Secretary Janet L. Yellen has warned that a global “race to the bottom” has been eating away at government revenues.

This literally sounds like something a cartel would say.

Shouldn’t the responsibility for US corporate problems be (presumably) addressed by the US government? I’m not understanding your point here.