Over 130 countries reached a deal on a 15 percent minimum corporate tax rate to deter big global companies from stashing money in low-tax countries.
President Biden has been one of the driving forces behind the deal. A total of 136 countries came to the agreement, representing 90 percent of the global economy.
“Today’s agreement represents a once-in-a-generation accomplishment for economic diplomacy,” Treasury Secretary Janey Yellen said in a statement.
“Rather than competing on our ability to offer low corporate rates,” she added, “America will now compete on the skills of our workers and our capacity to innovate, which is a race we can win.”
The Paris-based Organization for Cooperation and Economic Development said that the minimum tax would net roughly $150 billion for governments.