Nearly 150 countries agreed on a plan to prevent large global companies from avoiding taxes by shifting profits to low-tax countries. Large U.S.-based multinational corporations are exempt from the 15% global minimum tax. Treasury Secretary Scott Bessent called it a victory for American sovereignty and workers.

Former Treasury Secretary Janet Yellen was a key driver of the OECD global tax deal. The plan, criticized by congressional Republicans, aimed to make the U.S. less competitive. The Trump administration renegotiated the deal to remove a revenge tax provision, allowing companies with foreign owners to avoid additional taxes.

Tax transparency groups criticize the amended OECD plan, saying it allows profitable American companies to continue using tax havens. The minimum tax is meant to stop a race to the bottom in corporate taxation. Congressional Republicans support the deal, praising it as a win for America and a reversal of the Biden Administration’s global tax policy.

Read more at Yahoo Finance: US-based multinational companies will be exempt from global tax deal