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The Organization for Economic Co-operation and Development (OECD) Global Tax Deal (Global Tax Deal)

President Trump issued a presidential memorandum to the Treasury Department on January 20, 2025 unilaterally pulling the United States out of an internationally negotiated deal that would have set a global minimum tax on large corporations.

The deal, negotiated under the Biden administration, was extremely modest in its ask of corporations (essentially a minimum tax of 15% – well under the current statutory rate in the United States). But it was a start to allowing nations to collect an appropriate revenue share from powerful corporations.

This type of international cooperation is necessary to crack down on tax havens – countries that impose minimal taxes on corporations and invite them to use financial engineering and dubious accounting practices to shift profits to these tax havens. Because these accounting profits of large corporations are extremely mobile across borders, ensuring that corporations pay their fair share of taxation both in the United States and in other countries, international cooperation to end tax havens was necessary.

Undercutting this deal directly benefits these corporations and will harm typical Americans, either through spending cuts or a shift of the tax burden onto their shoulders.