The G7 industrial democracies are expected to offer their support to the Global minimum corporate tax of more than 15% proposed by the Biden Administration, the United States Under Secretary of the Treasury said on Monday, Wally Adeyemo, in an interview with Reuters.
“My feeling is that you will see a lot of unified support among the G7 in the future,”
“That support can be expressed at an in-person meeting of the G7 finance ministers in London from June 4-5“.
“A broad international commitment of 15% or more is expected to help build support in Congress for a US corporate tax increase to narrow the gap between US and foreign rates. Once a higher US minimum is set, that will provide incentives for other countries to move towards the US rate.“.
“If we can get the world to say that it is willing to reach at least 15%, it gives us the ability to return to the international conversation once we are done with the national part.”
Last week, the Treasury proposed a global minimum rate of 15% or more, well below the Biden administration’s minimum rate of 21% for foreign income from US companies and its proposed domestic corporate tax rate of 28%.
France, Germany, Italy and Japan have expressed their support for the Treasury proposal.
The risk tone remains optimistic amid easing inflation fears, with the US dollar lagging across the board. The US dollar index last traded at 89.76, falling 0.10% daily.