Momentum Grows to Make Global Businesses Pay Their Taxes
Voice of America
WASHINGTON - Momentum is clearly growing within the United States and the world’s other major economies behind plans to make it more difficult for large international businesses to avoid paying taxes in countries where they are located. But experts warn there is still plenty to be done to achieve that elusive goal.
Over the weekend, the finance ministers of the G-7, which includes the U.S., Canada, the United Kingdom, Germany, France, Italy and Japan, agreed in principle to the creation of a global minimum tax on corporations that would force companies that shift profits to subsidiaries in low- or no-tax jurisdictions to pay as much as 15% in taxes on that income to the country where they are headquartered. At the same time, the Biden administration is pushing a change to U.S. domestic policy that would block companies from paying little or nothing in taxes by claiming large tax deductions year after year even as they report large profits to their shareholders. Profound changePalestinians gather at the site of an Israeli strike on a camp for internally displaced people in Rafah on May 27, 2024. Fire rages following an Israeli strike on an area designated for displaced Palestinians, amid the ongoing conflict between Israel and Hamas, in Rafah in the southern Gaza Strip, in this still picture taken from a video, May 26, 2024. Palestinians gather at the site of an Israeli strike on a camp for internally displaced people in Rafah on May 27, 2024. A member of the bomb squad of the Israeli police collects debris after a rocket fired by Palestinian militants struck in the Israeli city of Herzliya on May 26, 2024.
Georgian President Salome Zourabichvili, right, and Prime Minister Irakli Kobakhidze, left, leave a podium after marking Independence Day in Tbilisi, Georgia, May 26, 2024. Demonstrators with Georgian national and EU flags rally during an opposition protest against a foreign influence bill as they mark their country's Independence Day, in the center of in Tbilisi, Georgia, May 26, 2024.