G7 backs Biden's sweeping overhaul of global tax system

[peppertree]

Group of Seven finance ministers gathering in London agreed Saturday to back a global minimum tax of at least 15% on multinational companies.

The G7 group also agreed that the biggest companies should pay tax where they generate sales, and not just where they have a physical presence.

UK finance minister Rishi Sunak announced the agreement in a video posted on Twitter Saturday, saying G7 finance ministers - hailing from Canada, France, Germany, Italy, Japan, the UK and the US - had "reached a historic agreement to reform the global tax system to make it fit for the global digital age and, crucially, to make sure that it's fair so that the right companies pay the right tax in the right places."

The agreement was made during a G7 meeting of finance ministers in London, attended by US Treasury Secretary Janet Yellen, where she sought backing for the administration's efforts to rewrite international tax rules and discourage American companies from booking earnings abroad.

At: https://www.cnn.com/2021/06/05/business/g7-biden-global-tax-intl-gbr/index.html

G7 Finance Ministers join IMF Director Kristalina Georgieva (front row) and other international officials at Lancaster House in London earlier today.

The G7 (accounting for 45% of the world's GDP) reached a landmark accord on Saturday backing the creation of a global minimum corporate tax rate of at least 15% in an effort to close cross-border tax loopholes used by some corporations.

[pwb]

1. Good news.

Zero Corporate tax sucks to the rest of us.

[peppertree]

2. True - although for it to have real effect, the tax haven countries should be included

Along with the G7 ministers, they should've invited - among others - those of Ireland, Luxembourg, Switzerland, and the Cayman Islands.

Over half the money laundries in the world, moreover, are UK overseas territories - something Boris never likes anyone to bring up.

[RainCaster]

3. There needs to be some sort of economic penalty agains those tax havens

These need to be discouraged, with heavy penalties (tariffs?) to offset the damage they do to the world.