U.S. Push for Higher Minimum Tax Sets Up Battle Over OECD Rate

Democratic proposals to toughen minimum tax rules could leave U.S. companies facing higher taxes than their peers if negotiators working on a global digital tax deal opt for a lower rate than the U.S.

If changes to the U.S. minimum tax—which taxes income known as GILTI—become law, the U.S. is likely to make the case that other countries should follow its lead within OECD-led discussions aimed at revamping global tax rules by this summer, tax observers say.

Nearly 140 countries are working to overhaul decades of international tax rules and agreements, with a plan that includes a global minimum tax ...