German Finance Minister and Vice-Chancellor Olaf Scholz speaks to the media upon his arrival for a casual assembly of the Eurogroup on Could 21, 2021.
CARLOS COSTA | AFP | Getty Pictures
LONDON — Germany has warmly welcomed a United States proposal that calls for firms around the globe to pay at the least a 15% tax on their earnings.
The U.S. Treasury Division launched its plans on Thursday, saying that worldwide negotiations ought to be bold — that means that in the end the determine might be greater than 15%. The company tax price within the U.S. is presently 21%, however President Joe Biden has plans to lift it to twenty-eight% and desires greater charges in the remainder of the world.
“That is actually an enormous progress,” German Finance Minister Olaf Scholz mentioned Friday morning concerning the U.S. announcement. “I’m now, at this morning, very pleased.”
“We’re pleased that it appears very very similar to we could have an answer in the summertime this yr. And the brand new administration in the USA makes a distinction as a result of they mentioned it’s possible to do it,” Scholz informed reporters in Lisbon, Portugal.
“That is the perfect likelihood for having a worldwide tax reform which (will battle) towards the race to the underside,” he added.
The difficulty could be controversial throughout the European Union, the place varied member states cost completely different company tax charges and may entice big-name corporations by doing so. Eire’s tax price, for instance, is 12.5%, whereas France’s could be as excessive as 31%.
Talking in April, Irish Finance Minister Paschal Donohoe mentioned smaller nations ought to be allowed to have decrease tax charges on condition that they do not have the identical capability for scale because the bigger economies do, the U.Ok.’s Guardian newspaper reported.