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Thinktank urges UK government to back Biden’s global tax plan | Tax and spending

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The UK would reap an extra £14.7bn annually by adopting Joe Biden’s proposal for a new global minimum corporation tax rate of 21%, according to a major thinktank.

The Institute for Public Policy Research (IPPR) Centre for Economic Justice has urged the government to embrace and push for the US president’s proposals at the forthcoming G7 summit, arguing that the global system would both be fairer and allow the UK to raise billions in vital revenue.

Biden has set out plans, based on long-gestating proposals by the Organisation for Economic Cooperation and Development, to force the world’s biggest multinationals to pay taxes to national governments based on the sales the companies generate in each country, and to establish a global minimum rate, to deter firms from shifting profits abroad and to reduce international undercutting on tax.

The US initially proposed a minimum global corporate tax rate of 21%, but has since signalled it could accept a 15%…

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