Summary
President Donald Trump's administration renegotiated a global tax agreement, exempting U.S. multinational corporations from a proposed 15% minimum tax. Former Treasury Secretary Janet Yellen stated this could reduce U.S. tax revenue and worsen the fiscal deficit. The Organisation for Economic Cooperation and Development (OECD) announced the finalized tax plan with 147 nations, excluding the U.S. from some of its effects.
Key Facts
- The Trump administration exempted U.S. companies from a global 15% minimum tax.
- Janet Yellen warned the exemption might cut into U.S. revenue and increase the deficit.
- The OECD announced a new global tax plan agreed upon by 147 countries.
- The plan aims to prevent tax avoidance by large companies worldwide.
- Treasury Secretary Scott Bessent called the exemption a win for U.S. sovereignty.
- President Trump opposed previous commitments due to concerns over U.S. sovereignty.
- The exemption lets U.S. firms avoid higher taxes and maintain favorable conditions abroad.
- Critics say the exemption weakens the global tax agreement's effectiveness.
