Oct 30, 2021 - Politics & Policy

G20 leaders endorse global minimum tax

G20 leaders pose for the media prior to a meeting at the La Nuvola conference center for the G20 summit on October 30th, 2021 in Rome, Italy.

British Prime Minister Boris Johnson, French President Emmanuel Macron, German Chancellor Angela Merkel and President Biden, pose prior to a meeting at the G20 summit on Oct. 30 in Rome. Photo: Stefan Rousseau - Pool/Getty Images

President Biden on Saturday at the Group of 20 Summit achieved an endorsement of a 15% global minimum tax from world leaders, according to a senior administration official.

Driving the news: The global minimum tax is a top priority for the Biden administration and the new global minimum seeks to reverse the decline in tax rates on corporations globally, CNN reports.

  • "The President emphasized the importance of this historic deal during his intervention," per the official. "The President also mentioned that while we don’t see eye to eye on every issue, we can tackle shared interests."
  • All G20 leaders came out in support of the global minimum tax, a senior administration official said.

The big picture: Saturday's commitment from G20 leaders comes after more than 130 nations agreed this month to a 15% minimum global tax rate following years of negotiation.

  • The commitment from G20 leaders adds momentum to the global implementation of the corporate minimum tax. Each individual nation will pass its own version of the tax, which could take some time, per CNN.

What they're saying: "[Biden] reminded G20 leaders that new pandemics can arise any time, so it is important that we strengthen global health systems and do more to create the global health security infrastructure to make sure we are prepared against the next pandemic," per the senior administration official.

  • "The President stressed the need for balanced, well supplied, and competitive global energy markets so we don’t undermine this critical moment of economic recovery."

Go deeper: Over 130 countries agree to deal on global corporate tax rate

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