President Biden is rallying G7 nations to set a “global minimum tax” of 15% on corporations.
The G7 — an informal “Group of Seven” wealthy nations consisting of Germany, Italy, the United Kingdom, France, Japan, Canada, and the United States — is meeting on Friday for the first time since President Biden assumed office. In addition to climate change and the rise of China, world leaders will discuss an international 15% floor on corporate taxes.
According to a June 11 statement from the White House:
G7 leaders will endorse a strong global minimum tax of at least 15 percent. This U.S. priority is a critical step towards ending 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.
Experts, however, have pointed out several issues with the proposal.
On one hand, if the G7 forces smaller nations to