The eco brief. Corporate tax resurfaces with the health crisis

La Défense, the business district near Paris (PHILIPPE TURPIN / MAXPPP)

The United States is pushing its international partners to agree on a minimum corporate tax rate. Washington is pushing as Joe Biden presents his stimulus plans. 3,000 billion dollars will be injected initially into the economy, with strong social measures. Then, 2,000 billion will be used to support businesses and the construction of major infrastructures. The bill is steep and the public debt cannot settle everything on its own. Hence this little music which rises: companies must contribute to the collective effort.

Washington wants discussions to take place within the G20, the twenty richest countries and the whole of Europe. The goal is to end the race to the bottom. Today, to attract businesses to their territory and guarantee them a competitive environment, countries compete to offer businesses lower tax rates than their neighbors.

To finance his stimulus plan, President Joe Biden wants to put companies to work by raising the corporate tax from 20 to 28%. Clearly, it is about canceling a decrease decided by his predecessor Donald Trump.

European countries will have to sit around the table. France, after lowering corporate tax, has promised not to reverse its decision. Will she be able to hold out? Finally, we will have to play finely so as not to restrain business investment, which is capital to ensure the recovery. The discussions promise to be passionate. The United States wants to reach an agreement within the G20 by July.

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