G7’s New Tax Deal Lets U.S. Multinationals Dodge Minimum Tax — Who Really Benefits?

The G7, representing the world’s seven largest economies, recently announced a surprising agreement that will exempt major U.S. multinational corporations from paying the internationally agreed-upon minimum 15% corporate tax rate established by the OECD.This so-called "global tax deal" originally emerged in 2021 as a historic effort involving 136 countries to combat corporate tax avoidance and ensure fair taxation where profits are actually earned. The two key pillars of this agreement were designed to enforce a baseline tax floor (Pillar 2) and fairly redistribute taxing rights (Pillar 1).However, under the current administration—and despite former President Donald Trump’s early move to withdraw...