President Biden’s nominee to lead U.S. negotiations on the global minimum tax initiative recently told the Senate Finance Committee that the levy on profits of large multinational corporations would discourage their use of tax havens. Jay Shambaugh, nominated as Treasury undersecretary for international affairs, said that the 15% global minimum tax included as part of a negotiated deal to revamp international taxation would instead give U.S.-based multinationals more incentive to keep earnings at home or in closely allied countries. It would require multinationals with more than $786 million in annual revenue to pay a tax rate of at least 15% on a country-by-country basis.
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