Under Biden, America got 150 countries to agree a 15% global corporate tax. Under Trump, America gets an exemption
Under Biden, America got 150 countries to agree a 15% global corporate tax. Under Trump, America gets an exemption
Under Biden, America Gets a Global Tax Deal. Under Trump? No Such Luck.
It's a story of two presidencies: one that brought the world together on taxes, and another that opted out altogether. The difference between Joe Biden and Donald Trump's approach to international corporate taxation couldn't be more stark.
Under President Biden, America played a key role in convincing 150 countries to agree on a global minimum corporate tax rate of 15%. It's a move hailed by many as a major step towards fairness and a more level playing field for businesses across the globe. The deal, announced earlier this year, aims to prevent companies from exploiting loopholes in different countries' tax systems.
However, when Trump was in office, America didn't just opt out of the international talks – it actively opposed them. In fact, under Trump's administration, the US secured an exemption from the global corporate tax deal that would have raised billions of dollars in revenue for governments worldwide.
What does this mean for American businesses?
- The Biden administration's approach is seen as a way to curb multinational corporations' ability to shift profits to low-tax countries, often through complex financial arrangements.
- Supporters of the deal argue that it will help governments around the world fund essential public services and reduce inequality.
The exemption negotiated by Trump's administration has been criticized for benefiting American companies at the expense of other countries' tax bases. But what does this mean in practical terms? Well, it's unlikely to affect your daily life directly – unless you're a shareholder in one of these multinational corporations, that is.
