For years, world leaders have been trying to launch a historic overhaul of global tax rules, aiming to tackle an unwieldy system rife with loopholes long exploited by big business. That goal may finally be in sight.
The Biden administration’s decision to back a global minimum corporate tax rate while it pushes a massive $2 trillion infrastructure package in the United States has ignited hopes that a long-elusive agreement can be reached this summer. “What we see this year is an acceleration in the process,” Italian Finance Minister Daniele Franco told reporters following a meeting of G20 finance ministers and central bank governors on Wednesday.
He said the group is working to come to an agreement by July. Earlier this week, French Finance Minister Bruno Le Maire said “an agreement on international taxation is now within reach.”But experts question whether a deal between the roughly 140 countries participating in discussions led by the Organization for Economic Cooperation and Development would be strong enough to force multinational companies to pay more taxes.