White House to Announce US and G7 Support for Minimum Corporate Tax Rate of 15%

Consensus Reached on Ending Corporate Tax Rate Cut Competition
Expected to Be Included in G7 Summit Joint Declaration

[Asia Economy New York=Correspondent Baek Jong-min] The White House announced that the Group of Seven (G7) will publicly support the introduction of a minimum corporate tax rate of 15%.

[Image source=EPA Yonhap News]

On the 11th (local time), ahead of the G7 summit scheduled from the 11th to the 13th, the White House released a statement saying, "President Biden, along with the G7 leaders, expressed support for the introduction of a minimum corporate tax rate of 15% proposed by the United States."

The White House emphasized that the decade-long competition among countries to lower corporate tax rates targeting large corporations has come at the expense of worker protection, expanded infrastructure investment, and the growth of the middle class, and ending this is a priority for the United States.

President Biden is seeking to secure funding through raising corporate taxes while pushing forward a large-scale infrastructure investment plan. To this end, under the recognition that closing tax loopholes and raising corporate taxes globally are necessary, Treasury Secretary Janet Yellen has led efforts to introduce a global minimum corporate tax.

At the G7 finance ministers' meeting held prior to the G7 summit, an agreement was already reached on introducing a minimum corporate tax rate of 15%.

The White House also highlighted that a historic agreement was reached to establish a digital tax collection framework that expands taxing rights to where profits are generated.

The United States mentioned that, together with the G7, it is promoting a $100 billion Special Drawing Rights (SDR) reallocation proposed by the International Monetary Fund (IMF). This is expected to enable economic recovery in countries severely affected by COVID-19, and to promote a more balanced, sustainable, and inclusive global recovery.

The White House announced that these details will be released in the form of a joint declaration from the G7 summit.