Global Minimum Tax | Pillar Two Implementation

EU Member States are beginning to implement the side-by-side agreement reached by the G7 last year—a deal that put the US and OECD global minimum taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. frameworks on equal footing. This is an important step in trans-Atlantic economic relations, which have been frayed by hostility over discriminatory policies.

However, there is more work to be done—on both sides of the Atlantic. If there’s a downside to the side-by-side agreement, it’s the risk of locking in mediocre tax policy choices for the long run.