US Companies Get Reprieve as Global Tax Deal Falls Short on Profit-Shifting Crackdown
A landmark global tax deal aimed at cracking down on multinational corporations shifting profits to low-tax havens has fallen short, with the US exempt from a 15% minimum corporate tax rate. Nearly 150 countries have agreed to the plan, but negotiations between Washington and other G7 nations resulted in the exclusion of large US-based multinationals.
The Organisation for Economic Cooperation and Development (OECD), which led the talks, hailed the deal as a "landmark decision" that would enhance tax certainty, reduce complexity, and protect tax bases. However, critics are calling it out for watering down a 2021 agreement that set a minimum global corporate tax rate of 15%.
The US was opposed to the original plan from the start, with former Treasury Secretary Janet Yellen playing a key role in its development. While her successor, Scott Bessent, praised the deal as a "historic victory" for preserving American sovereignty and protecting workers and businesses, others are seeing it as a defeat.
"This deal risks nearly a decade of global progress on corporate taxation only to allow the largest, most profitable American companies to keep parking profits in tax havens," said Zorka Milin, policy director at the Fact Coalition. Tax watchdogs argue that the minimum tax is necessary to halt an international race to the bottom for corporate taxation.
The exclusion of US companies from the 15% global minimum tax rate has sparked criticism from tax transparency groups, who see it as a blow to efforts to close loopholes and ensure fair taxation across borders. The deal's watering down comes after previous attempts by the Biden administration and others to impose similar taxes on multinational corporations, which have been met with resistance from lawmakers in Washington.
The US Treasury Department has maintained that the exemption is necessary to protect American businesses and workers from extraterritorial overreach. However, critics argue that it will allow large corporations to continue shifting profits to low-tax havens, undermining efforts to close tax loopholes and ensure fair competition globally.
A landmark global tax deal aimed at cracking down on multinational corporations shifting profits to low-tax havens has fallen short, with the US exempt from a 15% minimum corporate tax rate. Nearly 150 countries have agreed to the plan, but negotiations between Washington and other G7 nations resulted in the exclusion of large US-based multinationals.
The Organisation for Economic Cooperation and Development (OECD), which led the talks, hailed the deal as a "landmark decision" that would enhance tax certainty, reduce complexity, and protect tax bases. However, critics are calling it out for watering down a 2021 agreement that set a minimum global corporate tax rate of 15%.
The US was opposed to the original plan from the start, with former Treasury Secretary Janet Yellen playing a key role in its development. While her successor, Scott Bessent, praised the deal as a "historic victory" for preserving American sovereignty and protecting workers and businesses, others are seeing it as a defeat.
"This deal risks nearly a decade of global progress on corporate taxation only to allow the largest, most profitable American companies to keep parking profits in tax havens," said Zorka Milin, policy director at the Fact Coalition. Tax watchdogs argue that the minimum tax is necessary to halt an international race to the bottom for corporate taxation.
The exclusion of US companies from the 15% global minimum tax rate has sparked criticism from tax transparency groups, who see it as a blow to efforts to close loopholes and ensure fair taxation across borders. The deal's watering down comes after previous attempts by the Biden administration and others to impose similar taxes on multinational corporations, which have been met with resistance from lawmakers in Washington.
The US Treasury Department has maintained that the exemption is necessary to protect American businesses and workers from extraterritorial overreach. However, critics argue that it will allow large corporations to continue shifting profits to low-tax havens, undermining efforts to close tax loopholes and ensure fair competition globally.
The global community is facing a similar situation again, where multinational corporations are using loopholes to avoid paying their fair share of taxes. 
It's time for countries to take a stand and work together to close these tax loopholes once and for all! 
. I mean, you'd think we're living in a world where everyone's supposed to play by the same rules. But nope! The big US companies get to keep dodging taxes and exploiting loopholes while everyone else has to cough up their fair share 
.
. And what really gets my goat is that these same companies are raking it in while the average American struggles to make ends meet 
It feels like we're just going through the motions here... 
. I mean, all these big US companies are basically getting away with paying less tax just because they're huge 
... but now they get a free pass? Not cool 
. I think we need more transparency and accountability in taxation, you know? Something has to change so that everyone contributes their fair share 
Just read about this global tax deal and it's all like "meh" for the US 
Companies get a free pass on paying 15% minimum corporate tax rate while other countries are all in 
The whole thing just feels like corporate governments trying to protect their own interests instead of actually tackling the issue of profit shifting 
Not exactly the progress we need when it comes to fair taxation
. But on the other hand, I think it's kinda cool that a huge group of countries came together to try and tackle this complex issue 
. Plus, at least they're trying to close loopholes and make sure corporations pay their fair share 
. Maybe it's not as perfect as we'd like, but I think we should give them credit for trying 
. And who knows, maybe this is just a stepping stone towards even bigger changes in the future 
