Today marks an important step in moving the global economy forward to be more equitable for workers and middle class families in the United States and around the world. I want to thank all the signatories of the Paris OECD statement – 130 countries – for coming together to endorse a global minimum tax rate of at least 15 percent. These nations make up more than 90 percent of the world’s economy, which puts us in striking distance of full global agreement to halt the race to the bottom for corporate taxes.
With a global minimum tax in place, multinational corporations will no longer be able to pit countries against one another in a bid to push tax rates down and protect their profits at the expense of public revenue. They will no longer be able to avoid paying their fair share by hiding profits generated in the United States, or any other country, in lower-tax jurisdictions. This will level the playing field and make America more competitive. And it will allow us to devote the additional revenue we raise to making generational investments, which are necessary to keep America’s competitive edge razor sharp in today’s global economy.
I promised to lead the world to deliver a foreign policy for the middle class, and today, we are doing just that.
Reaching this consensus wasn’t easy. It took American vision, as well as a commitment to closely cooperate with our partners around the world. It’s a testament to how leadership rooted in our values can deliver important progress for families everywhere.
Building on this agreement will also require us to take action here at home. It’s imperative that we reform our own corporate tax laws, as I proposed in my Made in America tax plan. We must adopt the global minimum tax, among other measures I have proposed, to make sure corporations pay their fair share. Congress should pass my Made in America tax plan to bring good paying jobs home and make sure our tax code works for families, workers, and small businesses, not just profitable corporations and billionaires.
I commend Secretary Yellen for her efforts championing these discussions and look forward to continued productive negotiations. I look forward to full agreement in the fall.