G7 Leaders Vow To End 'race To Bottom' On Taxes
Muhammad Irfan 2 months ago Sun 13th June 2021 | 09:50 PM
Carbis Bay, United Kingdom, (UrduPoint / Pakistan Point News - 13th Jun, 2021 ) :The G7 on Sunday advanced a plan to impose a global minimum corporation tax and a collective crackdown on avoidance, arguing it would help tackle inequality.
At a summit in southwest England, G7 leaders endorsed an agreement struck by their finance ministers last week to adopt a minimum floor for corporation tax of 15 percent.
"Our collaboration will create a stronger level playing field, and it will help raise more tax revenue to support investment and it will crack down on tax avoidance." The proposal, which now goes to G20 nations meeting in Italy next month, is aimed at snaring more taxes from revenue-hopping multinational companies, especially tech giants.
"Too many corporations have been engaged in what are essentially tax savings, deciding that they would pay considerably less in other environments around the world," Biden told reporters after the G7.
"But this is going to make sure there is a minimum tax and I'm going to move on this at home as well.
"And this agreement is going to help arrest the race to the bottom that has been going on among nations protecting corporate investment at the expense of priorities like protecting our workers and investing in infrastructure," he said.
While winning the rest of the G7 over to his plan, Biden still faces resistance in the US Congress, where Republicans are leery of the Democrat's ambitious tax-and-spend plans.