G7 Nations Reach Historic Global Minimum Tax Agreement
The Group of Seven secures a landmark deal to close cross-border tax loopholes used by massive tech companies. World leaders and corporate executives weigh in on the historic pact.
The Group of Seven rich nations strikes a landmark deal to close cross-border tax loopholes used by some of the world's biggest companies. UK Finance Minister Rishi Sunak calls the agreement a historic reform that makes the global tax system fit for the digital age, though he notes that the deal still requires approval from the broader G20 group of countries.
US Treasury Secretary Janet Yellen praises the unprecedented commitment to a robust global minimum tax of at least 15 percent. She explains that this rate ends the race-to-the-bottom in corporate taxation, ensures fairness for the middle class, and levels the playing field so countries compete on positive bases like workforce education and infrastructure investment.
Facebook Vice President of Global Affairs Nick Clegg welcomes the progress and acknowledges that the reform process could mean the social media giant pays more tax in different places. However, the campaign group Oxfam strongly criticizes the agreement, arguing that a 15 percent minimum rate sets the bar incredibly low and fails to truly fix a broken global tax system.