Why it matters and what it will (and won’t) do

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In the fall of 2021, the United States and 136 other countries representing more than 95% of global GDP agreed to change the way multinational corporations are taxed. Treasury Secretary Janet Yellen says the OECD/G-20 twin-pillar agreement on base erosion and profit shifting (BEPS) will end the “damaging race to the bottom on corporate taxation” that robs countries of billions of dollars in tax revenue every year. Pillar 1 will allocate for the first time a share of the profits of the largest multinationals to the countries where their goods are consumed. Pillar 2 will combat tax competition by encouraging countries to adopt a global minimum tax on foreign corporate income at a rate of 15%.

On Friday, April 15, the Hutchins Center on Fiscal & Monetary Policy and the Urban-Brookings Tax Policy Center organized an event to explain the importance of the agreement; how it will affect multinational corporations, advanced economies and developing economies; and prospects for its implementation.

During the live event, the audience submitted questions to https://www.sli.do/ using code #GlobalTax or join the conversation on Twitter using the hashtag #GlobalTax.

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