As President Joe Biden continues to sing the praises of a global minimum tax rate, some European nations are saying “no deal.”
Leaders from around the world moved quickly over the last few weeks to finalize an agreement on a global minimum tax.
But now Joe Biden is getting opposition from some surprising places.
Recently, 130 nations reached a groundbreaking agreement for a global minimum tax rate on corporations, but the deal seems to be souring.
News has broken that Biden’s Treasury Secretary Janet Yellen may push for a 15% tax rate – higher than originally agreed to.
That was all it took for nine nations to refuse to endorse the draft tax plan – Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria, Sri Lanka, St. Vincent, Peru, and the Grenadines.
Estonia, Hungary, and Ireland pose the biggest problem for Biden and the one-world “Great Reset” proponents.
It is said that a unanimous decision may be required from the 27-member bloc that makes up those three EU countries, which could be very hard to come by.
Ireland, which already has a 12.5% tax rate, has stated it has “reservations” about the initial plan, but is open to continuing negotiations.
“I was not in a position to join the consensus on the agreement and specifically a global minimum effective tax rate of ‘at least 15%’ today. I have expressed Ireland’s reservation, but remain committed to the process and aim to find an outcome that Ireland can yet support.” Irish Finance Minister Paschal Donohoe stated.
Hungary was more matter of fact in their rejection with Finance Minister Mihaly Varga stating that 15% is just “too high.”
Officials in Estonia merely stated they weren’t ready to “fully endorse” the plan.
The European Union is attempting to downplay disagreements, saying more negotiations will happen over the next few months.
Biden and Yellen claim the minimum corporate tax rate is intended to eradicate certain tax havens that allow multinational companies to shield profits.
They also say it will give smaller countries more tax revenue from bigger firms.
This type of worldwide minimum tax will of course increase the tax burden on all business investments around the world and lead to an increase in costs, especially for those in the poorest nations.
Something like this could severely impact U.S. companies, the stock market, and the U.S. economy as well.
But some argue this is all part of their plan to help usher in the socialist system they really want.