As the Organization for Economic Co-operation and Development (OECD) works to reach a consensus on establishing a global minimum corporate tax rate, the administration is making its voice heard. Last month, the U.S. shook up global tax negotiations by proposing a hefty rate of 21 percent, a figure which is significantly higher than the 12.5 percent rate previously discussed at the OECD.
An agreement would allow OECD member nations to tax corporations headquartered within their borders the difference between the agreed upon minimum rate and the rate paid on profits made internationally. That new tax scheme is devised to equalize tax rates across the globe, but results in benefiting richer nations at the expense of developing economies.
The full opinion piece is available at The Hill.