On Saturday, July 10, 2021, finance ministers from G20 agreed on the proposal to establish a 15% minimum international corporate tax rate system to eliminate tax-havens. Along with the G20 finance ministers, 131 countries from around the globe agreed this month, enabling the new tax rate to be enacted shortly. The US Secretary of the Treasury Janet Yellen applauded the course of events, “The world is ready to end the global race to the bottom on corporate taxation… the world should now move quickly to finalize the deal.” Her Japanese counterpart Aso Taro expressed his endorsement of the historic achievement, expressing the agreement as “a historic change in a century.” While many praise the agreement as a “historic achievement,” Ireland was not on the list of signatories given their economic benefits from their low corporate taxes establishing themselves as a tax haven. With further intentions, G20 finance ministers concluded the meeting with a firm judgment towards other nations which have not yet signed their name into the once-in-a-generation international agreement. According to the Organisation for Economic Co-operation and Development, commonly referred to as OECD, the minimum 15% international corporate tax would increase the yearly revenue for 10,000 corporations by $150 billion. The proposal would effectively eliminate the tax havens the 4 main US corporations utilize to avoid the US corporate taxation. Amazon, Apple, Facebook, and Google will in effect pay their taxes in the United States, as the agreement would raise Ireland and other countries’ corporate taxes and bring the revenues back into the hands of the US government.
The Liberal Conservative 