Joe Biden’s Treasury Department has proposed a 15% global minimum corporate tax rate as part of the Organization for Economic Cooperation and Development (OECD) discussions on international tax negotiations.
In a press release distributed on Thursday, Treasury officials said that they believe that “the international tax architecture must be stabilized, that the global playing field must be fair, and that we must create an environment in which countries work together to maintain our tax bases and ensure the global tax system is equitable and equipped to meet the needs of for the 21st century global economy.”
“It is imperative to work multilaterally to end the pressures of corporate tax competition and corporate tax base erosion. Treasury reiterated that with the global corporate minimum tax functionally set at zero today, there has been a race to the bottom on corporate taxes, undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments,” continued Treasury’s statement.
Treasury made clear that a global corporate minimum tax rate “would ensure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and would spur innovation, growth, and prosperity while improving fairness for middle class and working people.”
Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.