House Bill Raises Chance For Global Pact To Curb Corporate Tax Havens

“This is more than just tweaks,” said Craig A. Hillier, an international tax expert at Ernst & Young. “These are material moves being proposed on how foreign income is taxed.”

However, the legislation offered by the House Democrats would in some ways be less revolutionary than what the Biden administration envisioned and less onerous for companies.

The Treasury Department has called for a 21 percent tax on corporate foreign earnings, a higher rate than the House proposal or what the finance ministers have so far agreed to support. Part of the reason for the push is that Mr. Biden has proposed raising the corporate tax rate in the United States to 28 percent from 21 percent, and administration officials say a higher global minimum tax would reduce the incentive for U.S. companies to shift profits overseas.

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