Last month, 136 countries agreed to a global treaty that would tax large corporations at a rate of at least 15%. Ryan Heath of POLITICO speaks with Pascal Saint-Amans of the OECD, who led negotiations on the landmark deal, on stage at the annual Web Summit in Lisbon, Portugal, about when the tax goes into effect and the deficiencies for which it is on alert. More: Saint-Amans talks about a member of the Biden cabinet who supports a global carbon pricing system.
Trying to get world leaders on the same page
“You have to drag them. You have to keep the cats. You have 140 countries – China, United States, Europe, tax havens, African countries; a lot of divisions in all of this. And you’re not even in a room – you’re on Zoom because we had COVID during the last mile of this negotiation. So a lot of political calls – from ministers to ministers and I was trying to orchestrate that with the compelling argument, which is if you don’t agree it’s going to be chaos. And the other big compelling argument being that President Biden has made it his number one priority, his number one economic priority. And when you have American firepower, of course, you have more results. – Pascal Saint-Amans, Director of the Center for Tax Policy and Administration of the Organization for Economic Co-operation and Development (OECD)
On the implementation phase
“We need countries to ratify the multilateral convention. We need the US Congress, which is always reluctant to ratify multilateral stuff, especially tax matters to ratify. But despite everything, this agreement is so important that it turns the page.