US Deputy Treasury Sec. Adeyemo expects G7 support for 15%-plus global minimum tax

Dhwani Mehta FXStreet

G7 industrial democracies are expected to offer their support for the Biden Administration’s proposed 15%-plus global minimum corporate tax, US Deputy Treasury Secretary Wally Adeyemo said in a Reuters interview on Monday.

Key quotes

“My sense is that you’re going to see a lot of unified support amongst the G7 moving forward,”

“That support may be voiced at an in-person meeting of G7finance ministers in London on June 4-5.”

“Expect a broad international commitment of 15% or more to help build support in Congress for a US corporate tax increase by narrowing the gap between US and overseas rates. Once a higher US minimum is in place, that will provide incentives for other countries to move toward the US rate.”

“If we can get the world to say that they’re willing to do at least 15%, it gives us the ability to come back to the international conversation once we’ve finished to the domestic piece.”

The Treasury last week floated a global minimum rate of 15% or higher, well below the Biden administration’s 21% minimum rate for US companies’ overseas income and its 28% proposed domestic corporate tax rate.

France, Germany, Italy and Japan have voiced their support for the Treasury’s proposal.

Market implications

The risk tone remains upbeat amid easing inflation fears, with the US dollar on the back across the board. The US dollar index was last seen trading at 89.76, down 0.10% on a daily basis.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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