Despite the historic milestone, the London agreement is about far more than just tax. Sources close to the talks said initial UK reluctance to back the Biden plan for a global minimum tax rate centred on dragging Washington closer to trade talks. For Biden, a global minimum tax is core to his economic agenda as he attempts to raise more revenue to fund a $1.9tn (£1.3tn) Covid recovery plan. It is for this reason that the G7 agreement is a point on the road rather than the final destination. Tears are being shed on the neoliberal right that the western powers are killing-off vital competition between nations by agreeing a minimum tax rate.

Source: The Guardian June 06, 2021 15:11 UTC