LETTER: G7 alone can’t decide global taxes
The initiative has merit but it will need much wider consultation
This weekend the G7 group of countries reached an agreement in principle on a proposed global minimum company tax rate. Naturally, this has been dubbed a historic event; if ratified, it would indeed be.
The US government would gain from higher tax receipts as American multinationals would no longer be able to shift revenue from low tax jurisdictions, and would be subject to the same minimum rate everywhere. Moreover, the higher taxes would fund President Joe Biden’s proposed $1.7-trillion infrastructure bill and ease the burden on the Fed to monetise government activity. The large European countries would in turn drop plans to place digital sales taxes on US internet companies...
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