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IPFS News Link • Globalism

EU Scraps 'Digital Levy' Targeting American Tech Giants Amid Global Tax Reform Push

• Zero Hedge

The EU just took another step toward endorsing Treasury Secretary Janet Yellen's international corporate tax reform plan by reportedly sidelining a European "digital tax" that would have mostly impacted American tech firms. Brussels is moving ahead despite Ireland's reservations about the plan (which we'll get in to below).

To make the deal more palatable for countries like Ireland, the US is offering a bigger piece of tax revenues from American multinationals, including Facebook and Google, to be distributed based on where those companies operate. In exchange, the world would agree to maintain a higher minimum corporate tax rate, helping to de-incentivize American firms from trying to move out of the US (it's critical if the Biden Administration wants to offset its spending-heavy agenda with the biggest tax hikes in decades.