Germany hails US move on corporate tax as ‘great step forward’


German Finance Minister Olaf Scholz on Tuesday welcomed Washington’s backing for a worldwide minimal corporate tax, calling it a “great step forward” within the battle to stem the erosion of presidency revenues.

“The support of the USA gives this initiative a strong tailwind,” Scholz informed reporters, saying he hoped a deal might be reached this 12 months.

The optimism comes a day after US Treasury Secretary Janet Yellen stated Washington was pushing within the G20 for a worldwide minimal corporate tax, saying the world’s interconnected financial system had led to “a 30-year race to the bottom on corporate tax rates.”

“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations,” she stated in a speech to the Chicago Council on Global Affairs.

Finance ministers of the G20 membership of huge economies are anticipated to debate the proposal throughout a digital assembly on Wednesday, hosted by Italy.

A Treasury official informed reporters the G20 purpose is to have a proposal on the worldwide minimal tax by July, and President Joe Biden’s administration might if wanted change its laws to carry the US minimal tax into line with the worldwide plan.

A G20 settlement would give a push to ongoing negotiations within the broader Organisation for Economic Co-operation and Development (OECD) on a worldwide minimal tax as a option to defend all members from erosion of tax revenues.

“I am confident that with this corporate taxation effort we can end the race to the bottom,” Scholz stated, calling Yellen’s backing “a great step forward”.

“It’s now realistic that we could reach an agreement this year,” he added.




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