Ahead of an in-person meet of G7 Finance Ministers scheduled to take place in London on June 4-5, Wally Adeyemo, the US Deputy Treasury Secretary, said in an interview with a press agency on Monday that he had had been signalled the G7 Finance Ministers would more likely to back a Biden Administration’s much-debated proposal to raise global minimum corporate tax more than 15 per cent.
If truth is to be told, strong supports from G7 economies for a 15 per cent-plus global minimum corporate tax would help Biden Administration raise domestic corporate tax to 28 per cent from a previous 21 per cent in a deeply divided US Congress, suggested analysts.
G7 economies set to support a 15 per cent-plus global minimum corporate tax
Besides, speaking in an interview with a press agency as beforementioned, Adeyemo said, “My sense is that you're going to see a lot of unified support amongst the G7 moving forward,” adding that the supports would be unenveloped in an upcoming in-person meet of G7 Finance Ministers.
Surprisingly, Adeyemo was also quoted saying that he had received supportive remarks about the proposal from Finance Ministers of France, Germany, Italy and Japan, while reactions from British Finance Minister Rishi Sunak would likely to be more shielded, paving ways for Biden Administration’s proposal of a domestic corporate tax hike to 28 per cent.
In tandem, latest progress on raising minimum global corporate taxations came against the backdrop of a US Treasury decision last week that had aired a global minimum tax rate of 15 per cent of higher, below the Biden Administration’s proposal of a taxation of 21 per cent on overseas income and 28 per cent on domestic earnings.
Back in the 2017s, former US President Donald Trump had slashed the minimum tax rate for US companies on their overseas incomes to 10.5 per cent.