While the day started off with a win for Biden, he’s facing a more skeptical global audience than he found the last time he trekked to Europe to meet with world leaders.ĭivisions within Biden’s own political party are threatening to derail his entire economic agenda back home, and Biden himself has acknowledged the credibility of the United States and the future of his presidency are on the line. And so, you know, I think there’s going to be a broad understanding that takes time.” “These are multigenerational investments and, of course, we’re trying to reform the tax code to pay for it. There’s a complicated process in any democracy to do anything as ambitious as we’re pursuing in our domestic agenda,” the senior administration official said. “These world leaders really are sophisticated. Biden administration officials have downplayed the effect that Democratic infighting has on Biden’s ability to rally foreign leaders. ![]() It’s a reshaping of the rules of the global economy,” a senior administration official said.Īspects of Biden’s recently unveiled spending framework would enact part of the global minimum tax scheme, though the fate of that measure remains uncertain as Democrats haggle over timing. “In our judgment, this is more than just a tax deal. The Biden administration breathed new life into the global initiative earlier this year and secured the support of the G7 countries in June, paving the way for a preliminary deal in July. The measure would tax large multinational companies at a minimum rate of 15% and require them to pay taxes in the countries where they do business. “We reached a historic agreement for a fairer and more effective international tax system,” Draghi said, adding, “These results are a powerful reminder of what we can achieve together.” Italian Prime Minister Mario Draghi, the leader of this year’s G20, said in remarks at the summit’s start that the agreement was proof of the power of multilateralism. One hundred thirty-six nations agreed to such a tax in October, and Saturday’s endorsement from 20 of the world’s largest economies is seen as a step toward worldwide implementation. ![]() “The President also mentioned that while we don’t see eye to eye on every issue, we can tackle shared interests.”Įach individual nation must pass its own version of the tax, and it may take some time to implement worldwide. ![]() “The President emphasized the importance of this historic deal during his intervention,” the official said, referring to Biden’s turn to speak during the meeting. The new rule will be formalized when the leaders release a final G20 communiqué on Sunday, when the summit ends.Īll leaders of the G20 came out in support for a global minimum tax during the summit’s first session, a senior US administration official said. The tax is a chief priority of Biden’s that the White House believes would end the global race-to-the-bottom on corporate tax rates. President Joe Biden’s first day at the Group of 20 Summit began Saturday with the President achieving one of his core objectives for the global conference – an endorsement of a 15% global minimum tax from world leaders.
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