Experts are concerned that President Joe Biden’s new global minimum tax rate of 15 percent on large multinational corporations will harm the small businesses that support them.
Treasury Secretary Janet Yellen confirmed on Oct. 30 that leaders of the world’s 20 biggest economies (G-20) have endorsed the “historic agreement” on new international tax rules, including a global minimum corporate tax rate of 15 percent.
The new rule would also make it harder for multinational firms, including tech giants such as Google, Amazon, and Facebook, to avoid taxation by establishing offices in low-tax jurisdictions.
It’s estimated that the measure will generate around $150 billion in additional global tax revenues annually, while stabilizing the international tax system and increasing tax certainty for taxpayers and tax administrations, according to the Organization for Economic Cooperation and Development (OECD).