OECD head says Biden's global tax proposal is a game changer

The new head of the Organization for Economic Cooperation and Development says he is “quietly optimistic” about reaching an international deal on taxing multinational companies

PARIS -- The new head of the Organization for Economic Cooperation and Development said Tuesday that he is “quietly optimistic” about reaching an international deal on taxing multinational companies, and he called U.S. President Biden's recent proposal a “game changer." OECD Secretary-General Mathias Cormann made the remarks at a news conference after taking over from Angel Gurria, who left office after leading the Paris-based organization since 2006. Cormann, asked about the prospects for a global taxation deal, replied, "Clearly there are a lot of conversations still on the way. You know, you don’t get too far ahead of yourself, but I’m quietly optimistic.” More than 140 countries are taking part in talks convened by the OECD that focus on a global minimum for corporate taxation to deter big companies from shifting their profits to low-tax jurisdictions, and on taxing multinationals that earn substantial revenue in countries where they have no physical presence, such as internet retailing and digital advertising companies.