Historic G7 decision – Wealth Club approves minimum corporate taxes

The finance ministers of the seven major industrialized countries agreed at their meeting in London yesterday on a historic solution to the problem of international tax competition. You want all businesses with a profit margin of 10 percent or more to tax effective at least 15 percent. If the plan is approved in individual countries and adopted by additional countries, the most comprehensive international corporate tax reform in decades could come about.

British Chancellor of the Exchequer Rishi Sunak said enthusiastically that the agreement would “make the global tax system fit for the digital age” and ensure that “the right businesses in the right place pay the right taxes”. US Treasury Secretary Janet Yellen, the driving force behind the agreement, spoke of a “fundamental” and “unprecedented” deal. “A global minimum tax would end the race to cut corporate taxes and create justice for the middle class and workers in the United States and around the world.”