On July 1st, 2021, over 130 countries agreed to a sweeping overhaul of the global taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. system.
This agreement—on a 15% global minimum tax—was unprecedented, taking on over a century of how international tax competition has been done.
One year later, the deal appears stuck. Countries are moving ahead with caution before codifying this new tax into their laws.
Daniel Bunn, Tax Foundation’s Executive Vice President, joins Jesse to discuss what this delay means for countries and multinational corporations, and what the path ahead looks like for global tax policy and competition.