UPDATED 9:53 AM PT – Monday, July 12, 2021
Leaders of the Group of 20 industrialized nations are advancing Joe Biden’s plan for a global corporate tax. During a summit in Venice, Italy this past weekend, G20 finance ministers agreed to adopt a flat 15 percent tax on transnational corporations.
Officials said they aim to approve the plan at the next G20 meeting in October. This decision came after nine members of the Organization for Economic Cooperation and Development rejected Biden’s plan while asserting it would only favor large countries.
Critics of the G20 have said the group is denying small nations a lucrative opportunity to host corporate offices.
“We think that the predation and the extractivism of natural resources must end, and we think we need a more effective taxation system,” stated Marco Baravalle, a Venice researcher. “For example, the 15 percent tax they are debating in this summit, which should be the global tax, we think it’s a joke, it’s a joke.”
— G20 Italy (@g20org) July 11, 2021
G20 agreements do not mean the global tax will go into effect. However, it adds pressure on smaller countries to stop giving tax breaks to corporations in exchange for investment.