A First Step Toward A Global Minimum Tax
G-7 agrees to a 15 percent minimum corporate tax framework. The group representing seven major industrialized nations backed the concept of a global minimum corporate tax rate of at least 15 percent. Companies would pay that rate regardless of their country of residence. Some large companies like Amazon, Facebook, or Google, would pay some tax based on where their goods or services are sold. Treasury Secretary Janet Yellen called the move significant and unprecedented. But much more needs to happen before the minimum tax becomes a reality.
This Wednesday: What will the Biden Administration’s corporate tax proposals mean? TPC and the University of North Carolina Tax Center will host a virtual event on whether an international minimum tax agreement could effectively limit harmful tax competition. Participants also will discuss how a corporate book income tax might work, other ways to limit corporate tax preferences and how Biden’s corporate tax plans might affect investment in the US, economic growth, and competitiveness of US-based corporations. Learn more and register here.
Treasury’s Kim Clausing will be Thursday’s guest on The Prescription. The Deputy Assistant Secretary for Tax Analysis will talk to TPCs Howard Gleckman about President Biden’s tax proposals as well as efforts to design an international corporate tax regime. To tune in on Thursday at Noon, register here.
Will we learn more about an infrastructure deal this week? Biden and Republican negotiators remain far apart on both spending and, especially, on taxes to pay for new infrastructure. The president and many Democrats differ on the details of those taxes. Stay tuned for possible fireworks; the Senate is back in session today.
The deficit will likely be bigger than Biden expects. TPC’s Howard Gleckman explains that while Biden’s budget is built on realistic economic assumptions, it also assumes that all of his proposed tax increases will become law. Howard argues that more realistically, the deficit will remain closer to 5 percent of Gross Domestic Product through the decade.
What if millions of people could register to vote when they file their taxes? TPC’s Vanessa Williamson says the idea of letting people register when they file their income tax returns is picking up steam among state and federal policymakers. She says, “Policy change comes slowly, but these approaches all have the potential to substantially improve ballot access for millions of Americans…. Americans ought to be reminded that they owe their country their voice, as well as their money.”
Are states’ tax-credit scholarships the best way to support school choice? “School choice” might make you think of state governments directing tax dollars to support private schools. But one increasingly common tax policy tool may be neither the most direct nor broadest path to supporting families who want school choice: Tax credits for businesses that support private schools. The Tax Hound reviews their growing popularity.
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