On November 3, the leaders of the world's 20 biggest economies endorsed an OECD deal on a global minimum corporate tax of 15% for multinational corporations at the G20 summit in Rome.
The G20 supported the initiative of the Organization for Economic Co-operation and Development (OECD), describing it as a historic achievement in stabilizing the international tax system. Earlier, G20 leaders called on the OECD to "develop the model rules to ensure they come into effect globally in 2023".
According to US Treasury Secretary Janet Yellen, the introduction of a minimum global tax on corporations (of 15%) would end the damaging race to the bottom on corporate taxation. This plan will stem competition for the lowest rates, Yellen believes. French President Emmanuel Macron voiced a similar opinion. He thinks the OECD initiative is historic. The French leader pointed out that his country had been working for four years for fair taxation.
Notably, the Biden administration intends to reform the existing tax system. The new plan would impose a tax on corporations and billionaires. The money raised will fund Biden's $3.5 trillion infrastructure bill, which includes social and climate projects. The decision has been criticized by wealthy Americans, particularly Elon Musk, the CEO of Space X and Tesla. He believes the plan is impractical and harmful not only to rich people but also to ordinary Americans. Musk is confident when the government runs out of taxes from the super-rich, it will come for the money of ordinary citizens.
