G7 Agrees To Exempt US Multinationals From Global Minimum Tax
The Group of Seven nations said Saturday they have agreed to exempt US multinational companies from a global minimum tax imposed by other countries -- a win for President Donald Trump's government, which pushed hard for the compromise.
The deal will see US companies benefit from a "side-by-side" solution under which they will only be taxed at home, on both domestic and foreign profits, the G7 said in a statement released by Canada, which holds the group's rotating presidency.
The agreement was reached in part due to "recently proposed changes to the US international tax system" included in Trump's signature domestic policy bill, which is still being debated in Congress, the statement said.
The side-by-side system could "provide greater stability and certainty in the international tax system moving forward," it added.
Nearly 140 countries struck a deal in 2021 to tax multinational companies, an agreement negotiated under the auspices of the Organisation for Economic Co-operation and Development (OECD).
That agreement, deeply criticized by Trump, includes two "pillars," the second of which sets a minimum global tax rate of 15 percent.
The OECD must ultimately decide to exempt the US companies from that tax -- or not.
The G7 said it looked forward to "expeditiously reaching a solution that is acceptable and implementable to all."
On Thursday, US Treasury Secretary Scott Bessent had signaled that a "joint understanding among G7 countries that defends American interests" was in the works.
He also asked US lawmakers to "to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill" -- Trump's policy mega-bill.
Section 899 has been dubbed a "revenge tax," allowing the government to impose levies on firms with foreign owners and on investors from countries deemed to impose unfair taxes on US businesses.
The clause sparked concern that it would inhibit foreign companies from investing in the United States.
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Indian Express
44 minutes ago
- Indian Express
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Hindustan Times
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India.com
an hour ago
- India.com
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New Delhi: The Middle East has seen the map of power redrawn time and again in the long shadow of the United States. Each turn of the Washington's wheel – whether in Iran, Lebanon, Iraq or Gaza – left behind a trail of upheaval. The reasons varied. Oil, ideology and rivalries. The results often followed a similar pattern. Regimes fell, alliances shifted and people suffered. Let's trace the most defining episodes where America's hand shaped the region and how each one ended up altering not just borders, but lives. 1953, Iran In the early 1950s, Iran's elected leader wanted control over the country's oil. British companies resisted. The United States stepped in, fearing a tilt toward the Soviet bloc. Its Central Intelligence Agency (CIA) backed street protests, media manipulation and palace intrigue. The elected government crumbled. Mohammad Reza Pahlavi, the Shah of Iran, returned to power. He ruled with American support for decades. The resentment brewed slowly. In 1979, it exploded into revolution. Tehran has never forgotten that coup. 1958, Lebanon Tension was rising in Lebanon. The Cold War had reached Arab soil. The president, leaning west, faced revolt at home. The United States invoked its new Eisenhower Doctrine and sent troops. Marines landed at Beirut airport. Their mission was to keep things calm, not to fight. It worked for the moment. But it left Lebanon's delicate sectarian balance shaken. The long-term fire had not been put out. Just postponed. 1973, Yom Kippur War On a holy day, Israeli soldiers were caught off guard. Egypt and Syria launched a surprise attack. The United States responded with an airlift of weapons and supplies to Israel. The war turned. But the cost was global. Arab states punished the West with an oil embargo. Long fuel lines. Soaring prices. A warning shot for American dependency. And yet, the US-Israel military bond grew stronger than ever. 1991, The Gulf War Saddam Hussein crossed a line literally. His tanks rolled into Kuwait. The world responded with resolutions and warplanes. America led a coalition of dozens. The campaign was swift. The footage, cinematic. Desert Storm was hailed as a success. But it left Iraq isolated, sanctioned and smoldering. A decade of internal repression followed. Children died of hunger and medicine shortages. Saddam stayed in power, but Iraq's spirit dimmed. 2003, Iraq Again A file. A fear. A flawed case. Washington claimed Saddam had weapons of mass destruction. None were found. Still, the invasion went ahead. Baghdad fell. Saddam vanished and then was captured. The regime collapsed. But what came next was chaos. Armed groups clashed. Militias rose. The Islamic State grew from the wreckage. Democracy was promised. Instead, instability took hold. Millions displaced. Hundreds of thousands dead. The scars remain. Across Decades, a Pattern Intervention did not always mean invasion. Sometimes it came in secret. Sometimes with soldiers. Sometimes through sanctions or airstrikes. But rarely did it end as planned. Regimes were toppled. But peace rarely followed. Trust evaporated. Generations grew up under rubble and barbed wire. Each time, Washington claimed to act for freedom, stability or self-defense. Each time, the ground beneath shifted. Sometimes for a week. Sometimes forever. What lingers is the memory. In the cities where bombs fell. In the markets where sanctions bit. In the homes where sons never returned.
