A Global Minimum Corporate Tax Is A Boost For Global Governance, And For A Carbon Tax

A Global Minimum Corporate Tax Is A Boost For Global Governance, And For A Carbon Tax

(L-R) President of the European Council Charles Michel, US President Joe Biden, Japanese Prime ... [+] Minister Yoshihide Suga, British Prime Minister Boris Johnson and Italian Prime Minister Mario Draghi pose for the Leaders official welcome and family photo during the G7 Summit In Carbis Bay, on June 11, 2021 in Carbis Bay, Cornwall. Global governance received a booster shot from G7 leaders at Cornwall in early June when they approved a global minimum corporate tax (GMCT). The new levy, which has since been approved by 130 countries, sets a global minimum in corporate taxes which multinational corporations have shell out in jurisdictions they operate in. It was hammered out in record time under the tutelage of the Biden administration and will be rolled out starting 2023. The question is can the GMCT serve as a model for global economic governance, where developed and developing countries come together in a spirit of cooperation? Such a spirit has been hopelessly absent since the pandemic, with the G7 and G20 squabbling over vaccine supplies and in providing economic assistance to Africa. On the tax front, Europe signaled its impatience by going its own way in implementing a digital services tax, which attracted