Biden sells G-7 on global tax, wants endosement

The G-7 leaders, participating in a three-day summit in England, have agreed to impose a global tax. White House press secretary Jen Psaki said Friday that leaders of the Group of Seven which also includes the United Kingdom, France, Canada, Germany, Italy and Japan agreed with US president Joe Biden on placing a global minimum tax of at least 15 per cent on large companies.Ealier, finance ministers of G7, this month, endorsed the global tax minimum.. A minimum tax is supposed to halt an international race to the bottom for corporate taxation that has led multinational businesses to book their profits in countries with low tax rates.

America is rallying the world to make big multinational corporations pay their fair share so we can invest in our middle class at home, Jake Sullivan, the president's national security adviser, said Friday on Twitte. This enables them to avoid taxes and encourages countries to slash rates. The minimum rate would make it tougher for companies to avoid taxes, and could possibly supplant a digital services tax that many European nations are imposing on U.S. tech firms that pay at low rates.The idea of an enhanced global minimum tax is also an integral part of Biden's domestic agenda, but it faces resistance in Congress.The president hopes a G-7 endorsement can serve as a springboard for getting buy-in from the larger Group of 20 complement of nations.