130 Countries Agree To Biden-Backed 15% Global Minimum Tax

130 Countries Agree To Biden-Backed 15% Global Minimum Tax

Share to Linkedin Treasury Secretary Janet Yellen and the Organization for Economic Cooperation and Development (OECD) announced Thursday that 130 countries including Switzerland, China and India have agreed to back a global minimum corporate tax rate of at least 15%, a policy priority for the Biden Administration, which has proposed major tax hikes on corporations to fund investments in infrastructure and social services. The 130 countries that agreed to the framework include members of the OECD and all members of the G20. "The framework updates key elements of the century-old international tax system, which is no longer fit for purpose in a globalized and digitalized 21st century economy," the OECD said in a statement. The OECD said it expects the plan to be finalized in October and said it has the potential to raise $150 billion in extra tax revenue every year. 90%. That's the share of global GDP accounted for in the 130 countries that signed onto the plan, according to the OECD. The Biden Administration has pushed for a global corporate minimum tax rate in order to prevent what Yellen frequently describes as a "race to the bottom": As countries seek to attract more foreign investment, they drive