G-7 agrees to exempt US multinationals from global minimum tax

https://www.straitstimes.com/world/united-states/g-7-agrees-to-avoid-higher-taxes-for-us-companies

28 comments

  1. So after kneeling to the US at the G7 summit earlier (by blaming Iran for Israels’ war on it, and ***getting*** ***nothing in return*** ***for Ukraine*** from the US. ***Edit:*** And also to devote 5% of their GDP to the military – ***while the US doesn’t have to match that***), the G7 has now carved out an exception for the US to its new ‘global’ tax regime. Which was itself negotiated by the previous US administration…

    >In January, through an executive order, Trump declared that the global corporate minimum tax deal was not applicable in the US, effectively pulling out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries.

    >He had also vowed to impose a retaliatory tax against countries that impose taxes on US firms under the 2021 global tax agreement.

    The US is apparently a law unto itself…

  4. So, if I was a CEO of a G7 country multinational, I’d want to know why my company is being unfairly targeted with a tax that American companies don’t have to pay.

    Why does the G7 want to burden it’s own businesses and boost American ones? Especially after the US has already imposed new tariffs on them?

    I’m going to guess that’s where this whole thing ends up and that they have just endangered the entire tax (?)

    *edited for a little clarification

  5. WTF THEN WAS EVEN THE POINT OF IT. the main reason we needed something like this is because of the massive tax evasion us concerns like facebook google and co do. with that exception, just throw the whole thing into the trash.

  6. It was essentially blackmail. The current megabill had a part buried in it (Section 899) that allowed the US to somewhat arbitrarily impose “revenge” taxes on foreign companies with “unfair taxes.” To be clear, this clause would have been devastating for both the US and foreign companies, but it’s entirely in line with the “America First” isolationist stance of the current administration. The G-7 chose the least terrible option and agreed to drop this tax in order to have that clause removed.

    To be clear, a lot of what’s going on right now is damage mitigation. You can’t spontaneously drop the United States as a trading partner, and it also takes time to path around the United States and reduce exposure. As the world continues to form new alliances which don’t include the United States, that sort of blackmail should become a lot less effective.

  7. Poor little billionaires just want to build their 25th mansion, how are they going to do that if they are forced to give a minuscule part of their income back to society?

  8. I wonder if we measured our leaders spinelessness vs corruption which one would win.

    Either way the rest of us lose.

  10. So does this work both ways? Do non American owned multinationals pay no tax in USA?

  11. So basically the worst offender gets an exemption

    Great work guys

  12. Yeah, lets let the rich off as usual. Absolute joke capitalism is

  13. So… what is the point of it then? Just dump the rule in the trash

  14. So the biggest polluters, biggest money makers, biggest political influencers. Get all the cake for free.
    While middle class citizens struggle, the environment decays and our standards of living are taxed to hell…..

    Yep the system ain’t broken it’s cancerous now

  18. The compliance requirements for Pillar 2 tax are extremely burdensome especially when the US already taxes foreign E&P at 21% compared to 15% (which is the case for some other nations). US multinationals already pay a minimum tax that addresses aggressive tax planning. This all seemed inevitable, but as someone working in tax for a US multinational I’m glad the work can stop around pillar 2.

  19. Does the US need that economic push in the grand geopolitical scheme of things? Why does the supposedly greatest economy in the world need development assistance?

  23. If you look up the word “window dressing”, you’ll find a nice picture of the latest G-7 summit.

  24. > The OECD must ultimately decide to exempt the US companies from that tax – or not.

    What does this mean

  25. Minimum tax kills tax competition. Is this bad? There is no agreement on it.

  26. Okay so it’s useless then, to appease the toddler nation. Great.

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