Welcome to the Capital Note, a newsletter about business, finance, and economics. On the menu today: the G-7’s agreement on digital taxes, May’s inflation numbers, the EU’s fine on Amazon, and Glenn Hubbard’s suggest for international tax authorities. To sign up for the Capital Note, follow this link.
Where does Google come from?
The big headline from this weekend’s meeting of G-7 financial ministers was an agreement to set a global minimum tax rate of 15 percent on corporations. But an equally consequential pillar of the deal pertains to the taxation of digital services.
Pillar 1, as negotiators call it, gives OECD member nations the right to tax the largest and most profitable businesses, regardless of these companies’ physical presences. If the deal goes through, multinational