Introduction of a global minimum corporate tax

Question for written answer  E-001928/2021
to the Commission
Rule 138
Dimitrios Papadimoulis (The Left)

Following his USD 1.9 trillion stimulus package[1], the US President unveiled a USD 2.2 trillion investment plan on 31 March to strengthen infrastructure, employment and society[2]. Among other things, the plan will be funded by raising corporate taxation from 21% to 28% and increasing US multinationals’ global income tax from 10.5% to 21%[3]. At the same time, the US Treasury Secretary announced that she is working with the G20 countries to agree on a global minimum corporate tax rate[4], an initiative that has already been welcomed by the Commission[5], the International Monetary Fund[6] and France and Germany[7]. The introduction of a global minimum corporate tax could actively tackle unfair tax competition between countries, combat tax evasion and avoidance, especially through offshore businesses, and generate substantial revenue to finance the recovery.

In view of the above, and given the fact that the US President has presented a series of measures and investments with far more funding than that allocated to the EU Recovery Fund:

• 1.Does the Commission intend to take steps to support the introduction and implementation of a minimum global corporate tax?
• 2.Is the Commission considering strengthening and expanding the Recovery Fund as the crisis caused by the pandemic intensifies, its accumulated socio-economic effects are more acutely felt and global competition increases?

• [1] https://www.dw.com/en/biden-unveils-19-trillion-plan-to-revive-pandemic-hit-us-economy/a-56230949, https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/
• [2] https://edition.cnn.com/2021/03/31/politics/infrastructure-proposal-biden-explainer/index.html
• [3] https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/, https://www.bkd.com/sites/default/files/2021-01/Biden%27s%20International%20Tax%20Proposals%20chart.pdf
• [4] https://edition.cnn.com/2021/04/05/politics/janet-yellen-global-cooperate-tax/index.html
• [5] https://www.reuters.com/article/us-usa-treasury-yellen-eu-idCAKBN2BT1YG
• [6] https://www.reuters.com/article/us-imf-world-bank-idUSKBN2BT1NG
• [7] https://www.reuters.com/article/imf-worldbank-taxation-germany/update-3-germany-and-france-see-global-tax-deal-ireland-has-doubts-idUSL8N2LZ2K4