Companies worldwide could collectively pay almost 14% more in corporate income taxes each year under a global tax deal that could be implemented as soon as 2023, according to new estimates from the International Monetary Fund.
The global tax deal, put forth by the Organization of Economic Cooperation and Development (OECD), would impose a 15 percent global corporate minimum tax on “consumer-facing” digital giants like Apple, Google, Facebook and Twitter. The plan has the backing of nearly 140 countries though European Union finance ministers are still seeking consensus on key pillars of the plan.
According to the IMF’s estimates, the minimum tax would increase corporate tax payments worldwide about 5.7%, or roughly $150 billion, according to Bloomberg.
Treasury Secretary Janet Yellen has endorsed the global tax plan for the United States but Republican members of the Senate Finance Committee are still concerned about the effect of the OECD agreement on U.S. competitiveness and tax revenue.