Biden Wants to Keep Freeze on Global Allies Taxing Big US Tech Companies
- Lack of extension risks triggering trade dispute with allies
- US Treasury committed to deal despite Congress pushback
Joe Biden
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The Biden administration is proposing to allies that they extend a coordinated freeze on new digital services taxes beyond its planned expiration at the end of this year, in a bid to avert a trade war among friends and keep alive a foundering global tax deal.
The freeze was included in the October 2021 global tax agreement, brokered by the Organization for Economic Cooperation and Development and supported by more than 130 countries. But that deal has not yet been implemented, in part because the US Congress has refused to endorse it.