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Expert Analysis

Will The OECD Plan Fix International Taxation?

By Lilian Faulhaber (July 7, 2021, 5:41 PM EDT) -- For the past several years, countries and voters have been arguing that multinationals do not pay their fair share of taxes, and that big tech companies in particular have been able to pay low rates of taxes or not pay any taxes at all to countries where they earn significant revenues. These claims have led to digital services taxes, threats of retaliatory tariffs, and fears of trade wars and cascading taxes.

On July 1, the Organization for Economic Cooperation and Development issued a press release announcing that 130 countries had agreed to a two-pillar international tax plan that the OECD billed...

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