In partnership with the World Taxpayers Associations, Americans for Tax Reform is leading a large international coalition to oppose the implementation of a global minimum corporate tax rate. Interested organizations can sign the coalition letter here to join the movement.
On June 5th, 2021, the governments of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States agreed at a Group of Seven (G7) meeting to institute a global minimum corporate tax rate of at least 15 percent. The official 2021 G7 Summit will occur in the United Kingdom from June 11th to 13th. Leaders from the G7 countries are expected to promote an even more comprehensive agreement on international taxation at the G20 meeting in July.
“This agreement would significantly damage the valuable tax competition among countries and would cause undue harm to businesses, workers, and economies around the world,” reads the letter. “A global minimum tax would greatly curtail the force of tax competition. This competition between nations offers a critical check on the power of governments and it is vital for ensuring efficient and reasonable levels of taxation.”
The letter also notes that the proposed global minimum tax would be especially damaging to countries such as Ireland, Bulgaria, and Hungary, which currently have lower, more competitive corporate tax rates. A global minimum tax would also be harmful to developing countries, which can use low corporate tax rates in order to encourage investment and economic growth.
The international coalition recommends that the G7’s agreement on a global minimum corporate tax rate should be abandoned and should be rejected by the G20 in July.
Sign the coalition letter here to ensure that this harmful policy is not implemented on an international level.