WORLD - Rich Nations Back Deal to Tax Multinationals

J. Froese

The G7 group of advanced economies has reached a “historic” deal to make multinational companies pay more tax.

The deal between the US, the UK, France, Germany, Canada, Italy and Japan, plus the EU, could see billions of dollars flow to governments to pay off debts incurred during the Covid crisis. 

Negotiated over many years, it will put pressure on other countries to follow suit, including at a meeting of the G20, which includes China, Russia and Brazil.

US Treasury Secretary Janet Yellen told reporters that the “historic” agreement on a global minimum tax would “end the race to the bottom in corporate taxation and ensure fairness for the middle class and working people in the US around the world.”

[Germany’s] Olaf Scholz said it was “very good news for tax justice and solidarity and bad news for tax havens.”

“Companies will no longer be in a position to dodge their tax obligations by booking their profits in lowest-tax countries,” he said. 

The deal aims to stop this from happening in two ways. 

Firstly, the G7 will aim to make companies pay more tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits.

Secondly, they want a global minimum tax rate so as to avoid countries undercutting each other with low tax rates.

The right to tax is the essence of sovereign power. That is why co-ordinated international action is so difficult. 

It has been the dream of campaigners and mainly European finance ministers for years. They would scarcely have believed it was possible until the past few months. But the need to fill coffers emptied by the pandemic, and the arrival of the Biden administration in the US, created a moment of opportunity.

-www.bbc.com, 5 June 2021

Commentary

This story of globalists versus globalists— global agreements between global corporations and the governments of rich countries—demonstrates the ultimate power of the latter; namely, the coordination of nations in regulating multinational corporations, which up to this point have generally had free reign to do as they please. While we recognize this as a predecessor to the one-world system prophesied in Daniel and Revelation, we also recognize that it is necessary to reign in the excesses of global corporations to a certain extent: “the merchants of the earth shall weep…” (Revelation 18:11). (By J. Froese)

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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