A Treasury official says he will help secure an international tax treaty

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The Biden administration is asking why multinational companies international tax treaty A senior official claimed the deal would restore order to globalization and blunt the forces of protectionism and populism that have threatened business in recent years, while aiming to tear down tax shelters.

Comments by Itai Grinberg, the Treasury Department official who represented the United States in the negotiations, provided a new rationale for the deal, which would require the largest overhaul of the international tax system in decades. If the deal goes into effect, it would introduce a global minimum tax of at least 15 percent and allow countries to impose new taxes on the goods and services of the largest and most profitable companies, regardless of where the companies are located.

But the Biden administration sees the deal as more than an end to the corporate tax “race to the bottom”, a boon to tax havens.

“We believe this agreement is part and parcel of restoring the foundations of the continued success of the liberal international economic order as we have known it for the past 75 years,” Mr. Business Economics Association.

The Biden administration is pushing the deal as part of a plan to raise taxes and have dozens of countries lower new digital services taxes targeting American tech companies without making companies in the United States less competitive around the world. More than 130 countries signed the framework for the agreement, which was negotiated through the Organization for Economic Cooperation and Development.

While large corporations are worried about the possibility of higher taxes, Mr. Grinberg argued that they have more to gain from a tax treaty. He argued that the lack of clarity and consensus in the international tax system has led to more double taxation, which, if left unchecked, could cause companies to withdraw cross-border investments.

“The impact of these declining transactions will extend far beyond large corporations and their shareholders, because the activities of multinational corporations are the backbone of the success of globalization,” said Mr. Grinberg. “And none of that would be good, because while it certainly has its flaws, globalization has brought benefits not just for multinationals, but for people in the United States and around the world.”

The Biden administration has argued that international tax proposals will bring more justice to the United States and economies around the world. He says they will do this by ending a system that allows companies to pay less taxes than middle-class workers, and by giving nations more tax revenue that they can spend on infrastructure and other public goods. Mr. Grinberg said it would be in the best interests of companies, arguing that the sense of injustice creates a troubling landscape for global businesses.

“If economic populism, protectionism and anti-immigrant sentiment become the order of the day, can multinational corporations globally succeed?” said.

Much remains to be done by October, when international negotiators hope to complete the deal. Ireland, Estonia and Hungary yet to join the dealand their resistance could prevent the European Union from advancing according to plan.

The Biden administration hopes that Congress will approve proposed changes to the U.S. global minimum tax this year and consider a proposal to allow other countries to tax America’s large multinationals next year after technical work on that plan is complete.

In his remarks, Mr. Grinberg said it was important to ensure that the agreement includes a dispute resolution system and a mechanism to ensure it is binding.

“Getting it right will be an important part of summarizing this deal in a multilateral contract,” he said.

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