The G20 endorsed President Biden’s 15% “global minimum tax” on corporations.
Over the weekend, members of the G20 — an international forum constituted by the United States, China, Germany, South Korea, the United Kingdom, and fourteen other leading economies, plus the European Union — met to discuss climate change, taxation, and other global economic issues.
During the summit, United States Treasury Secretary Janet Yellen touted the necessity of combating the “race to the bottom” for corporate taxes:
We need sustainable sources of revenue that do not rely on further taxing workers’ wages and exacerbating the economic disparities that we are all committed to reducing. We need to put an end to corporations shifting capital income to low tax jurisdictions, and to accounting gimmicks that allow them to avoid paying their fair share. We need to ensure that the globalized economy does not continue to shortchange our middle classes so that it can remain open and free, thereby encouraging economic growth and business