G-20 Countries Agree to Global Minimum Tax
The Wall Street Journal reported July 1 that the 20 largest economies in the world, including India, one of the countries that has proposed a digital services tax, have agreed to the U.S. proposal that all companies would pay at…
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least 15% corporate income taxes in every country where they operate. The Biden administration hopes that this agreement will be paired with an agreement to roll back DSTs, which Americans say are discriminatory toward large American companies. The Office of the U.S. Trade Representative has identified hundreds of products that could face U.S. tariffs if a DST solution is not found. The top Republican on the House tax-writing committee, Ways and Means, expressed dismay at the news. Kevin Brady, R-Texas, issued a statement that said this is a “global minimum tax structure that favors foreign-headquartered companies and workers over American ones. This is a dangerous economic surrender that sends U.S. jobs overseas, undermines our economy, and strips away our U.S. tax base. “Further, any agreement at the [Organization for Economic Cooperation and Development] must result in immediate repeal of all existing digital taxes and prevent any new digital taxes by the EU or others.”