Labor calls on Britain to support Biden’s global corporate tax plan
Labor is calling on the government to support Joe Biden’s plan for an overall minimum corporate tax rate, or risk isolation at next month’s G7 summit.
Phantom Chancellor Rachel Reeves said the President’s “historic” proposal could ensure multinational tech giants pay their “fair share” in taxes while generating billions for public services.
In a letter to Chancellor Rishi Sunak, she asked why, alone among the G7 countries meeting in Cornwall, the UK was the only one to be ‘lukewarm’ about the plan.
“This global deal will bring in billions of pounds in additional taxes to benefit Britain, while preventing large multinationals and online giants from undermining our business,” she said.
“By making sure they pay their fair share in Britain, we can level the playing field for our brilliant companies and build an economic recovery with thriving industries and good, secure jobs for all.”
The government insisted that it wanted an international solution to the “fiscal challenges” posed by the rise of the giants of technology and the digital economy.
However, he argues that reform should aim to force multinationals to pay more taxes in countries where they sell and operate.
Officials believe Mr. Biden’s plan would disproportionately benefit the United States, with companies simply paying more taxes in California.
The president initially proposed an overall minimum rate of 21%.
However, on Thursday, the US Treasury Department presented a plan for a 15% “floor”, while calling for discussions to continue “pushing that rate higher.”
In her letter to Mr Sunak – co-signed by shadowy Foreign Secretary Lisa Nandy – Ms Reeves said the UK should seek a rate ‘equal to or greater’ than the original 21% proposal.
“This creates the prospect of a landmark deal that could stop the global race to the bottom on corporate taxation and generate new revenue to support public services,” they wrote.
“This is a once-in-a-generation opportunity and if the government does not support this initiative, you risk undermining a global deal to fight tax evasion.”