What Will Congress Do About The Global Minimum Tax?
The global minimum corporate tax will go into effect in many countries soon, but not yet in the US. Governments in South Korea, Japan, the European Union, and the U.K. are moving ahead with the Organization for Economic and Cooperative Development’s (OECD’s) agreed-upon minimum corporate tax of 15 percent. But here in the US, Congress remains deadlocked over what to do. The Wall Street Journal reports (paywall) on what that could mean for US-based multinational companies.
Meanwhile, Swiss voters approved the global minimum corporate tax rate. They approved increasing Switzerland’s corporate tax rate to the 15 percent minimum level agreed to by members of the OECD. Seventy-nine percent of voters approved of the measure. The tax will go into effect next year. Also in Geneva, residents rejected increasing taxes on its richest citizens.
In Ohio, income tax cuts aren’t the only path to tax relief. TPC’s Richard Auxier and David Weiner modeled a possible refundable child tax credit (CTC) for Ohio families and compared it to the Ohio Senate’s proposed income tax rate cut. Among all households, they found that the CTC would provide benefits more evenly across income groups, while the income tax rate cut provides substantially larger benefits to higher-income households. Looking only at households receiving the tax cuts, the refundable CTC delivers bigger cuts than the Senate proposal to eligible families in every income group except those earning more than $200,000.
On Capitol Hill this week. The Senate Finance Committee will hold a hearing Thursday on cattle supply chains and Amazon deforestation.
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