Germany and France expressed their support for the United States’ request to create a global corporate tax of at least 21%, declared the ministers of the leading euro zone economies in an interview published on Tuesday (04.27.2021).
“People are fed up with big companies not paying their share of taxes,” French Economy Minister Bruno Le Maire told the German weekly Die Zeit. France proposed a rate of 12.5%, but if the rate suggested by Washington “is the result of negotiations, then we would also accept it,” added the French minister.
His German finance peer, Olaf Scholz, pointed out in the joint interview that he had “personally nothing against the US proposal” of a 21% rate, raised by US Treasury Secretary Janet Yellen in early April. Yellen said at the time he was in talks with his G20 partners. This initiative aims to end competition for downward taxes between countries and the use of tax havens by multinationals.
The idea was already proposed by the Organization for Economic Cooperation and Development (OECD), also with a rate of 12.5%, but the US suggestion gave it a new impetus. Thanks to this push, Olaf Scholz stressed that “now there is the right momentum to reach an agreement in the summer”.