Washington/Carpis Bay. Leaders of the world’s seven largest economies (G-7) will support United States President Joe Biden’s proposal to impose a global tax of at least 15 percent on businesses, the national security adviser said Friday. The White House, Jake Sullivan, during the opening day of the group’s summit.
The US Treasury proposed a minimum global tax of 15 percent on multinational companies in May to try to end the downward spiral in tax rates and deter companies from relocating to countries that are tax havens.
In their first meeting in nearly two years, the heads of state and government of the United States, Canada, Germany, France, Italy, Japan and the United Kingdom are meeting this weekend in southwest England to discuss a series of topics, among them the economic recovery after the crisis caused by the Covid-19 epidemic.
One way is to funnel hundreds of billions of dollars into the coffers of many countries free of the Covid-19 epidemic, while large, mostly American, Internet companies have benefited from the crisis, not only because of the increased demand for technology, but because of the lower taxes they pay.
In this sense, last Saturday, the finance ministers of the Group of Seven major industrialized countries reached an agreement classified as “historic” supporting the creation of a global minimum tax rate of 15 percent for multinational companies and for them to pay more taxes in the markets in which they sell goods and services.
Meanwhile, G7 leaders on Saturday agreed with the United States on the need to continue supporting their economies with fiscal stimulus. All leaders took part in the situation, including German Chancellor Angela Merkel, who has traditionally opposed the shift to heavy borrowing to stimulate growth, a stance that has been softened in the face of the Covid-19 crisis. So said a source familiar with the discussions.