The mood at Dublin tech pubs [mihailomilovanovic/E+ via GettyImages]
Fly like a G7... and drop bad news on Big Tech. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. The G7 met in London over the weekend — and left with some tea to spill: the countries agreed that multinational companies should pay a minimum tax rate of at least 15% in each country in which they operate.
The luck of the Irish... may end. The deal marks a big step toward potentially adopting a 15% global minimum corporate-tax rate. That Dublin office = not so clutch anymore. Companies would have to pay the minimum rate regardless of where they're based. The agreement aims to stop large multinationals from seeking out tax havens — and force them to pay more of their income to governments. But it still has to go through the G20, which includes China, India, and other developing economies.
This could level the playing field... and end the "race to the bottom." For decades, countries have been competing with each other to attract corporate investment for economic growth. The main way to do that: lower companies' taxes. In 2000, more than 55 countries had corporate tax rates above 30% — now, fewer than 20 do. President Biden wants to raise corporate taxes in the US to fund government programs. The admin is backing a 15% global minimum to help keep the US competitive.