G7 Move Toward Corporate Tax Deal
The nations of the G7 took a big step this week in establishing a global tax floor for corporations. Canadian finance minister Chrystia Freeland said this weekend that although an agreement has not yet been reached, the G7 is taking steps towards setting a global 15% tax rate for all corporations regardless of the country they reside in. The announcement does signal that it may soon be harder for companies to dodge high tax rates in countries like Canada, though this proposal does not come without its detractors. Many point out that it may be difficult to get smaller countries or even other groups of countries like the G20 or the OECD to get on board with the deal. As well, within countries, some, like Canadian opposition leader Erin O'Toole argue that staking national tax rates on international agreements results in a loss of a certain degree of national sovereignty.
Read more about the announcement HERE