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The United States has won international backing for its plan to overhaul the global system for taxing companies, a huge step toward simplifying a complex web of rules long exploited by big corporations.
Countries including India, China and Switzerland have agreed to a broad framework for reform set out by the Organization for Economic Cooperation and Development. The Paris-based group said Thursday that 130 countries and jurisdictions were on board, representing more than 90% of global economic output.
In a statement, US Treasury Secretary Janet Yellen called the agreement a "historic day for economic diplomacy." Yellen secured the support of the Group of Seven nations, including Canada, France, Japan, Germany, Italy and the United Kingdom, last month.
"For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs in response," Yellen said. That "race to the bottom" is now "one step closer to coming to an end," she continued.
