(CNN Business)One of President Joe Biden’s priorities is a historic overhaul of global tax rules. The world’s most powerful 20 economies are on board. But an island nation of 5 million people is standing in the way.
Biden still needs Ireland.
For years, the country has successfully attracted hordes of global businesses with a corporate tax rate of just 12.5%, compared to 21% in the United States and 19% in the United Kingdom. Facebook (FB), Google (GOOGL) and Apple (AAPL) have set up regional headquarters in the country, while pharmaceutical companies like Pfizer (PFE) have built manufacturing hubs.
Now, with 132 governments around the world in agreement on a minimum corporate tax of at least 15% to ensure big business pays its fair share, Ireland is digging in its heels.
“We are not in that agreement,” Finance Minister Paschal Donohoe recently told Irish media.
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WNU Editor: Ireland’s position may change. Negotiations are still ongoing. But the group that I predict will torpedo Biden’s global tax proposal will be the US Congress.