France Pushes For Global Corporate Tax Deal Through G7

Photo Credit: Elysee.fr

As a part of the French fight against massive corporation not paying taxes, French finance minister Bruno Le Maire is urging the world’s largest economies to reach a deal.

Le Maire is pushing for G7 countries to find a minimum corporate tax rate. The move by the French finance minister has put France and the US face to face. France recently passed a new 3% turnover tax, which didn’t go over very well in the US. US president Donald Trump responded to the new tax by ordering his most senior trade official to launch a “Section 301” investigation into the French plan. American officials have also responded with threats of economic retaliation against French exports.

France and many other countries, particularly those in the European Union, have been interested in establishing a minimum company tax rate. Most of Europe backs the idea, while the UK and Canada are reluctant to make any commitments as both countries are expecting major political changes in 2019. The US has agreed to the idea of a minimum corporate tax rate, but is upset that the French focus appears to be on American tech giants in what the US sees as unfair targeting of American companies. France has stated that the 3% turnover tax and all other measures are temporary. France and the other countries pushing for the tax would like to see the OECD implement an international deal on the issue, at which point local taxes enacted to make big companies pay taxes will be withdrawn.

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