Leaders from the largest economies in the world on Saturday supported a global tax minimum on corporations to help build fairness in light of skyrocketing profits of multinational companies.
The move by the Group of 20 summit in Rome was hailed by U.S. Treasury Secretary Janet L. Yellen as benefiting American businesses and workers.
G-20 finance ministers in July had already agreed on a 15% minimum tax. The formal approval of it at Saturday’s summit in Rome by the economic powershouses around the globe was highly anticipated.
Yellen stated in a statement, that the agreement on international tax rules with a minimal global tax “will end this damaging race to bottom on corporate taxes.” “
The deal did fall short of U.S. President Joe Biden’s original call for a 21% minimum tax. Yet, Biden expressed his delight via Twitter.
“Here at the G20, leaders representing 80% of the world’s GDP — allies and competitors alike — made clear their support for a strong global minimum tax,” the president said in the tweet. This is not just a tax agreement – this is diplomacy that transforms our world economy and delivers for our citizens.
On other issues crucial to fairness across the globe — including access to COVID-19 vaccines — the summit on the first of its two days — heard pleas to boost the percentage of those in poor countries being vaccinated.
Italian Premier Mario Draghi called for a faster pace to get vaccines to the poor as he opened the conference of world’s most powerful economies. Draghi, the summit host, said Saturday that only 3% of people in the world’s poorest countries are vaccinated, while 70% in rich countries have had at least one shot. These differences are morally inacceptable and undermine global recovery,” stated Draghi who is an economist and was once chief of European Central Bank.
World leaders were expected to discuss Iran’s nuclear ambitions and climate change. They also discussed fixing supply chain issues that are driving up the prices.
The two-day summit is the first in-person meeting of G20 leaders since the pandemic began. The visit will test Mr. Biden’s many years of experience in foreign policy.
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