The Push for a Higher, Worldwide Minimum Tax Rate, Explained

The U.S. and other countries are striving to reach a deal by this summer on a global minimum tax rate for multinationals, to combat corporate profit-shifting and stop race-to-the-bottom tax competition among countries.

“The dynamic there is very strong,” Pascal Saint-Amans, the OECD’s tax head, said Friday of the international negotiations over a minimum tax agreement.

The U.S. enacted its own minimum tax—known as GILTI, for global intangible low-taxed income—in its 2017 tax overhaul, set at 10.5%. The Biden administration wants to double that rate and toughen the rules. Meanwhile, the Organization for Economic Cooperation and Development is leading talks ...