A global tax deal is finally close to being finalized. The news gives both the U.S. and the U.K. the hope of reaching agreements and closing any legal loopholes that may exist in the agreement, according to the Tax Foundation’s Chris Krueger.
“The U.S. and U.K. have had constructive discussions on the standards required for a meaningful multilateral agreement and may be in a position to be able to reach an agreement in April after the April deadline for closing tax avoidance loopholes in the U.S.,” Krueger writes.
At home, pro-trade politicians say the deal would mean more jobs and economic growth.
“The agreement creates a level playing field between U.S. and international taxpayers. Even with a new approach to global tax regimes, these multi-level international tax systems are too complex to fully apply,” the Republican leadership in the U.S. House of Representatives wrote in a letter last month.
However, the U.S. does not have a global tax regime and would need to get the approval of the Senate, where two Republicans from states with big U.S. multinational corporations said the deal would have serious problems.
In the U.K., there is a lively debate as to whether a global tax deal would actually make a difference in international trade.