US Exemption Sparks Outrage as Global Tax Deal Falls Short on Multinationals
In a significant development, nearly 150 countries have agreed to a landmark plan aimed at curbing the practice of multinational corporations shifting profits to low-tax jurisdictions. However, the United States has been exempted from this deal, leaving tax transparency groups incensed.
The Organisation for Economic Cooperation and Development (OECD) finalised the agreement, which is expected to enhance tax certainty, reduce complexity, and protect tax bases. While the US Treasury Secretary, Scott Bessent, hailed it as a "historic victory in preserving US sovereignty," critics argue that this exemption undermines the deal's purpose.
The OECD secretary general, Mathias Cormann, has come under scrutiny for his past stance on fossil fuels and green energy targets, raising questions about his neutrality. With Trump's backing, Cormann was elected to head the OECD in 2021, setting a concerning precedent for future appointments.
The revised plan, which waters down an earlier agreement, sets a minimum global corporate tax rate of 15%. However, this exemption applies only to US-based multinational corporations, allowing them to maintain their lucrative tax havens. Tax transparency groups are now questioning the deal's integrity, fearing it may lead to an international "race to the bottom" for corporate taxation.
Critics point out that this move reverses progress made since 2021, when a similar agreement was reached under the Biden administration. Former Treasury Secretary Janet Yellen played a key role in driving this earlier deal and had prioritised the corporate minimum tax.
The US exemption has sparked outrage among tax transparency groups, with one policy director at the Fact Coalition describing it as "a major setback" that "risks nearly a decade of global progress on corporate taxation." The move is likely to further entrench an international practice where multinational corporations exploit loopholes to evade taxes, sparking concerns about fairness and competitiveness in the global economy.
In a significant development, nearly 150 countries have agreed to a landmark plan aimed at curbing the practice of multinational corporations shifting profits to low-tax jurisdictions. However, the United States has been exempted from this deal, leaving tax transparency groups incensed.
The Organisation for Economic Cooperation and Development (OECD) finalised the agreement, which is expected to enhance tax certainty, reduce complexity, and protect tax bases. While the US Treasury Secretary, Scott Bessent, hailed it as a "historic victory in preserving US sovereignty," critics argue that this exemption undermines the deal's purpose.
The OECD secretary general, Mathias Cormann, has come under scrutiny for his past stance on fossil fuels and green energy targets, raising questions about his neutrality. With Trump's backing, Cormann was elected to head the OECD in 2021, setting a concerning precedent for future appointments.
The revised plan, which waters down an earlier agreement, sets a minimum global corporate tax rate of 15%. However, this exemption applies only to US-based multinational corporations, allowing them to maintain their lucrative tax havens. Tax transparency groups are now questioning the deal's integrity, fearing it may lead to an international "race to the bottom" for corporate taxation.
Critics point out that this move reverses progress made since 2021, when a similar agreement was reached under the Biden administration. Former Treasury Secretary Janet Yellen played a key role in driving this earlier deal and had prioritised the corporate minimum tax.
The US exemption has sparked outrage among tax transparency groups, with one policy director at the Fact Coalition describing it as "a major setback" that "risks nearly a decade of global progress on corporate taxation." The move is likely to further entrench an international practice where multinational corporations exploit loopholes to evade taxes, sparking concerns about fairness and competitiveness in the global economy.
its like they're not taking it seriously at all... and now tax transparency groups are really mad about it 
have to wonder what's behind this move, hope Trump's influence isn't messing everything up again... anyway anyone else think 15% global corporate tax rate is pretty low? 
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. I'm not buying the US Treasury Secretary's claim that this exemption preserves US sovereignty - it just looks like a blatant handout to the 1% 
. And what's with the watering down of the agreement? The minimum global corporate tax rate might seem reasonable, but if only US-based corps get to keep their loopholes, it defeats the purpose 
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. I mean, this deal is supposed to reduce complexity and protect tax bases, but now it's like the whole thing is up in the air 
. And what's with the exemption? It's like they're trying to stick it to everyone else while still getting their own special deal 
. I mean, have we learned nothing from history? The US has always been a bit of a wild card in these kinds of agreements 
. I mean, former Treasury Secretary Yellen was on top of this stuff, and now it's like her efforts are being erased 
. This deal needs to be reworked ASAP if it's going to have any chance of working 
and another thing, isn't it weird that Cormann got his job because of Trump? Like, wasn't he supposed to be all about neutrality and stuff? 
. I mean, what's next? If we can't even agree on a global minimum tax rate without the US opting out, how are we supposed to make progress on this issue? It feels like we're just going through the motions here. The whole point of this agreement was to level the playing field and close loopholes for multinational corporations. But now it seems like they've found a way to work around that. 
. And what's with all these backroom deals and exemptions? It feels like we're being played for fools here. I'm not surprised that tax transparency groups are up in arms about this - it's only fair that everyone plays by the same rules.