Washington - Business Roundtable President & CEO Joshua Bolten today issued the statement below in response to an announcement by the Organisation for Economic Co-operation and Development (OECD) on a global tax agreement:
“Today’s OECD announcement reflects important progress in discussions among the Inclusive Framework countries. However, even with this announcement, other countries are far from enacting foreign minimum taxes of their own. While a future international agreement could be reached, actual enactment by individual countries of these provisions likely would be many years into the future.
“The U.S. is currently an outlier as the only country in the world that taxes income U.S. companies earn overseas—a big disadvantage for American companies. The House Ways & Means international tax proposal would exacerbate that disadvantage by increasing this so-called ‘GILTI’ minimum tax to significantly above the OECD’s negotiated 15% rate. While Business Roundtable has supported U.S. Treasury efforts to achieve a global minimum tax, we do not believe the U.S. should raise its minimum international tax unless and until our major competitors adopt their own comparable rules. So far, not one has.”