New disclosure requirements show that huge American corporations lowered their tax bills by billions of dollars through the use of tax havens in 2025, while U.S. anti-abuse rules struggled to keep up.
Though the establishment of a new “side-by-side” regime exempting U.S. corporations is a regrettable and unnecessary setback, the OECD’s global minimum tax remains a generational leap forward in the fight against corporate tax avoidance.
Today’s announcement by the OECD that U.S.-headquartered corporations will continue to be exempt from key elements of the global minimum tax regime represents a regrettable setback for the global fight against corporate tax avoidance.
Instead of undermining multilateral tax cooperation, Congress should address incentives in the U.S. tax code that encourage the offshoring of jobs and profits by American multinational companies.
The Supreme Court stays nationwide injunction against CTA enforcement, President Trump withdraws U.S. commitments to OECD global tax deal, and Treasury convenes summit on nature crimes and illicit finance.
By addressing unfair tax breaks given to U.S.-based multinational corporations, Congress can help level the playing field for wholly domestic businesses, end incentives for offshoring, and raise more than one trillion dollars in new revenues.
