One hundred and thirty countries have agreed on a 15% global minimum tax on big, multinational corporations. The idea is to prevent companies from shifting profits to their subsidiaries that are in low-tax or no-tax countries. The idea is that if companies don’t pay tax abroad they will still have to pay it at home. That would eliminate the incentive to use tax havens, or countries that offer very low tax rates to companies that do little or no business there _ but use clever accounting to move profits there. The deal reached in Paris backed a proposal from US President Joe Biden. He hopes to raise the US corporate tax to fund investments in infrastructure and clean energy.
