Scholz is proud of the minimum tax | free press

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Federal Finance Minister Olaf Scholz is never short of words when it comes to praising his own greatness. In recent days, the SPD’s candidate for chancellor has been to Washington for political talks. In addition to the usual self-praise, there were also appropriate photos for the public at home: Scholz in front of the Capitol, Scholz at…

Federal Finance Minister Olaf Scholz is never short of words when it comes to praising his own greatness. In recent days, the SPD’s candidate for chancellor has been to Washington for political talks. In addition to the usual self-praise, there were also appropriate photos for the public at home: Scholz in front of the Capitol, Scholz with his American colleague Janet Yellen. Scholz, the global citizen and doer.

And in fact the finance minister has something to show for it: 130 countries have agreed in principle on uniform rules for the taxation of multinational companies. That was announced on Thursday evening European time after years of negotiations. Scholz and his French colleague Bruno Le Maire were the driving forces behind the project – even at a time when the US president’s name was not Joe Biden, but Donald Trump and Washington did not attach much importance to international agreements.

During his performance in the American capital, Scholz speaks of “colossal progress” towards more tax justice. The participating countries would represent more than 90 percent of the global economic output. The race to lower corporate taxes is over. “So this is a real, really huge change that we’re going to see in the coming years and decades.” The agreement was concluded under the umbrella of the OECD Industrialized Country Organization. The G7 group of leading western economies had already outlined it recently. In the coming week, the 20 largest industrialized and emerging countries (G20) should make the notion perfect. Remaining technical questions should be clarified in October. Implementation is scheduled for 2023. A global minimum tax rate of 15 percent for businesses is now specifically planned. This should ensure that companies move fewer activities to tax havens. In addition, the world’s largest and most profitable companies should not be taxed only where they are located. But also where they generate revenue. This is aimed at internet giants such as Facebook and Amazon. Many questions are still open.

So far, not all EU countries are on board, which could complicate implementation in Europe. Britain succeeded in enforcing special rules for banks. Huge revenues are also not to be expected: calculations for Germany suggest that this could amount to around 100 million euros per year.