Summary
Donald Trump signed an executive order withdrawing the U.S. from the OECD global corporate tax deal, which set a 15% minimum tax rate on multinationals.
This move threatens Ireland, which relies heavily on corporate tax revenue from U.S. firms.
Trump also plans to retaliate against countries imposing “extraterritorial” taxes on U.S. businesses.
EU officials, including Ireland, expressed concern but emphasized their commitment to the tax reforms.
The decision risks escalating U.S.-EU tensions, with fears of trade tariffs and broader economic fallout.
I think it positions the US to lower its corporate tax rate below 15%, enticing tech companies to move their official HQs back to the US from Ireland. Of course this would likely result in a race to the bottom on corporate tax rates globally, which the agreement was meant to protect against so companies had to pay their fair share of wealth back to society.
Thanks, that makes sense.