In a global context where tax issues occupy an increasingly central place, the failure of the United States to ratify the international tax agreement could have significant repercussions on the global economy. After years of arduous negotiations between 140 member countries of the Organization for Economic Cooperation and Development (OECD), “Pillar 1” of tax reform aimed at ending tax loopholes by large multinational companies is currently in political impasse in Washington.
Failure by the United States to ratify this agreement could potentially trigger a tax war between the richest nations, particularly damaging tech giants such as Google, Apple, Meta and Amazon. Indeed, the agreement requires approval from the US Senate, which is proving to be a significant obstacle as Republicans oppose it and political polarization makes any compromise difficult.
This American political paralysis contrasts with the actions taken by other countries, like Canada which has already implemented a local tax on the largest technology companies in the world. This fragmentation of tax policies internationally risks creating an environment of uncertainty for multinational companies, compromising their ability to plan sustainable investments and contribute to economic growth.
The director of the OECD Center for Tax Policy and Administration, Manal Corwin, nevertheless emphasizes that negotiations are continuing, suggesting the possibility of a final agreement. However, the lack of international tax coordination could lead to harmful competition between countries to attract revenues from large companies, with potentially destabilizing consequences for the global economy.
However, the resilience of the US job market offers cause for optimism, with an unexpected increase in the number of job openings in May. This progress, while positive, should not mask the challenge that fiscal and economic authorities face in ensuring a stable and predictable environment for investors and businesses, thereby promoting job creation and long-term economic growth.
At the same time, the Federal Trade Commission’s unanimous decision to block the merger of two bedding giants, Tempur Sealy and Mattress Firm, highlights the importance of competition and antitrust policies to ensure a fair market for consumers.
Faced with these major issues affecting international taxation, employment and competition, it is imperative that political and economic actors find concerted and lasting solutions to ensure the stability and prosperity of the global economy in the years to come. future.