World leaders attending the G20 summit’s first session in Rome Saturday announced their endorsement of a global minimum tax, a senior administration official said.
“Most of the leaders were in person, with others there virtually,” the official said. “The leaders all came out in support of a global minimum tax. The president emphasized the importance of this historic deal during his intervention. The president also mentioned that while we don’t see eye to eye on every issue, we can tackle shared interests.”
The global minimum tax would prevent corporations from operating overseas to avoid taxes. It’s a position that President Joe Biden has pushed for since taking office. By establishing a 15% global minimum tax rate, the U.S. would garner at least $60 billion more in revenue per year in the U.S. alone, an official told reporters.
“The deal works because it removes the incentives for the offshoring of American jobs. It’s going to help small businesses compete on a level playing field, and it’s going to give us more resources to invest in our people at home,” an official explained. “It’s a game changer for American workers, taxpayers, and businesses, and in our judgment, this is more than just a tax deal – it’s a reshaping of the rules of the global economy.” (RELATED: Biden Administration Proposes ‘More Realistic’ 15% Global Corporate Tax Rate)
ROME, ITALY – OCTOBER 30: U.S. President Joe Biden is seen on the far left, as world leaders pose with medical personnel for a group photo at the La Nuvola conference center for the G20 summit on October 30, 2021 in Rome, Italy. (Photo by Kirsty Wigglesworth – Pool/Getty Images)
Now that all leaders have endorsed the deal, it will become official after the release of a communiqué Sunday, according to CNN. The G20 leaders committed to implementing the deal by a specific 2023 date, and each country involved “will go through its own process to ratify both pillars of the deal,” a senior administration official said.
G20 finance ministers agreed to a global minimum tax earlier in 2021, but day one of the G20 session Saturday marked the leaders announcing their endorsement, The Hill noted. The move was described by an official as “a testament to American diplomacy and leadership.”
“This president is pursuing a foreign policy for the middle class,” the official said.
The Biden administration believes that the implementation of a global minimum tax will help the president implement his Build Back Better agenda. Biden made a big push for his $1.75 trillion plan prior to leaving for Europe Thursday, but lawmakers have yet to vote on it.
