BofA Says Chance Of Global Corporate Minimum Tax Hit Is Rising“”Thanks To Biden

  • Date: 16-Apr-2021
  • Source: Forbes
  • Sector:Economy
  • Country:Middle East
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BofA Says Chance Of Global Corporate Minimum Tax Hit Is Rising“”Thanks To Biden

Topline

As lawmakers and policy experts in Washington debate the merits of President Biden's proposed changes to the corporate tax system, experts from Bank of America said Friday that one element of Biden's plan—a global minimum tax—has a better chance of becoming reality than it used to. Here's why.

U.S. President Joe Biden on April 15, 2021 in Washington, DC.



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Key Facts





Unlike Biden's other tax proposals, a global minimum tax cannot be enacted by the United States alone: other world economies would also need to agree on the minimum and pledge not to undercut it. 





The Biden administration hopes this type of international cooperation on corporate taxes will prevent multinational companies from relocating in search of lower tax rates because rates would be essentially the same everywhere.







“It is very hard to get global agreements on taxation,” the analysts wrote, “but there is a better chance today than in the past.”





That's partially because of the current political environment, which the analysts describe