Biden sells G-7 on global tax, but U.S. Congress is a hurdle

TIL Desk/World/Washington/ President Joe Biden might have persuaded some of the world’s largest economies to hike taxes on corporations, but the U.S. Congress could be a far tougher sell.

White House press secretary Jen Psaki said Friday that leaders of the Group of Seven which also includes the United Kingdom, France, Canada, Germany, Italy and Japan agreed with Biden on placing a global minimum tax of at least 15 per cent on large companies.

The G-7 leaders, participating in a three-day summit in England, affirmed their finance ministers who earlier this month endorsed the global tax minimum.

America is rallying the world to make big multinational corporations pay their fair share so we can invest in our middle class at home, Jake Sullivan, the president’s national security adviser, said Friday on Twitter.

A minimum tax is supposed to halt an international race to the bottom for corporate taxation that has led multinational businesses to book their profits in countries with low tax rates.