Washington, DC – Foreign Policy for America applauds President Biden’s leadership in delivering today’s historic G20 agreement on a global minimum corporate tax. By setting a minimum rate of 15% for the world’s largest corporations, and setting out clear enforcement mechanisms, this historic deal will ensure that multinational corporations pay their fair share.
The abuse of foreign tax havens has been a growing global problem, contributing to surging inequality in the United States and around the world. Corporations have played countries against each other in a race for the bottom. The result has been reduced resources for investments in health, education, and infrastructure.
This new deal has the potential to strengthen social safety nets. In the U.S., the deal is expected to generate $60 billion annually in revenues, which can be immediately invested in American families – the Childcare Tax Credit, expanded access to affordable healthcare, and other elements of President Biden’s Build Back Better plan – to help accelerate and secure our economic recovery. Companies that moved their headquarters away from the U.S. to hide their profits will no longer be able to do so.
The achievement was made possible by months of concerted American diplomacy. We thank Treasury Secretary Janet Yellen and Secretary of State Antony Blinken for their leadership in delivering this important international agreement.
“It’s clear that corporations shouldn’t be able to cheat their way out of paying taxes. As millions of Americans and people around the world are struggling to recoup the economic losses of the pandemic, this deal will help level the playing field and accelerate economic recovery here at home and abroad,” said Foreign Policy for America Executive Director Andrew Albertson. “Today’s agreement shows once again the power of American diplomatic leadership. By working together with the world’s largest economies, President Biden and his administration pushed back against corporate interests and delivered an important win for the American middle class.”