[arrosenberg]

> This makes no sense. Is the IRS a global institution now?

It makes perfect sense if you take them as separate concepts.

1. Joe Biden wants other countries to work with the US and set a tax floor for corporate taxation.

2. The US Congress can pass a law that brings corporate foreign taxation in line with how real people (not just fictional ones) are taxed on foreign profits. This doesn't make the IRS any more global than they have been for 100 years.

[russli1993]

will there be any penalties for countries that do not agree to this? Say if a country wants to set a lower tax rate than this 15% global minimum in order to attract businesses. Or this country could offer lower taxes in general because they don't want to collect that much tax. After all, how much tax to collect is a structural and public spending issue, and a ideological issue. It is specific to a country, and taxation policies and methods are supposed be the sovereignty of a specific country. I also assume this 15% tax is a tax on company profits. But some countries may want to have lower income tax, but a higher value added tax.

But in the future, when this is established, US and other participants in this scheme might view countries offering significant lower tax as anti-competitive, disruption of the market, disruption of established "international order". Using these talking points, the next logical step is to enact penalties. For example, levy extra taxes on that country businesses' operations and transactions in the judications of all of the participants. Would this be a valid concern?

[arrosenberg]

> Would this be a valid concern?

I wouldn't call it a concern, at least not for me. It's certainly a valid prediction based on historical priors. The US has the scale to make that type of decision for the rest of the world.