The taxman’s coming

Follow Us Get the newsletter The deal by the world's richest nations to modernize the century-old international tax code has been hailed by U.S. Treasury Secretary Janet Yellen as a sign of the "revival of multilateralism." Yet, as Saleha Mohsin writes, there's a long way to go before a corporate tax rate of "at least 15%" on global earnings becomes reality. The next step is getting it through a July meeting of Group of 20 finance ministers in Italy. Any accord must also win the support of a majority of the 140 or so nations involved in negotiations under the Organization for Economic Cooperation and Development. On the surface, the weekend agreement by Group of Seven nations marks a key step in addressing complaints that major digital companies, such as Google, Facebook and Amazon.com, can make money in multiple nations but pay taxes where they are the least burdensome. For U.S. President Joe Biden, it provides some leverage for his massive infrastructure program that he hopes to fund with higher taxes on domestic companies. But however much Yellen succeeded in London, she has a problem back in Washington. Republicans in Congress are already indicating they'll be difficult to persuade, partly out of concern that American firms will be in the crosshairs. Under the Trump administration, the U.S. refused to let foreign governments tax its tech giants. Then there's the question of how to accommodate countries such as Ireland, Singapore and Switzerland that use lower rates to attract investment. So the road to a final deal faces major hurdles. Even so, the progress so far is a sign that the days of corporations playing countries off against each other are coming to a close. — Karl Maier Boxes made to resemble Amazon packages during a protest outside the home of CEO Jeff Bezos in New York in December. Photographer: Paul Frangipane/Bloomberg Click here to follow Bloomberg Politics on Facebook and tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines No choice | President Vladimir Putin said Russia doesn't want to stop using the dollar even as he accused the U.S. of exploiting the currency's dominance for sanctions. And while he praised Biden as one of the world's most experienced leaders ahead of their summit on June 16, he warned Washington to heed the experience of the former Soviet Union, saying "the problem with empires is that they think they can afford small errors and mistakes." Midterm setback | Mexican President Andres Manuel Lopez Obrador has lost his super-majority in the lower house, with a quick count of midterm votes showing his coalition will hold between 265 and 292 seats in the 500-person chamber. That would make it much harder for Lopez Obrador to pass sweeping legislative changes, including to Mexico's energy sector. Early results show Peru's presidential runoff is too close to call, increasing the chances of a disputed election and calls for a recount. Electoral tailwind | Chancellor Angela Merkel's Christian Democratic Union won an election in the eastern state of Saxony-Anhalt yesterday, easily brushing off a challenge by the far-right Alternative for Germany party. The unexpectedly strong result is a boost to Merkel's successor as CDU leader, Armin Laschet, as he vies for the chancellery in federal elections in September. Looking south | Mario Draghi is taking on a challenge that has eluded every Italian leader for more than a century: to make the nation cohesive from Sicily to the Alps. The scale of fixing the south's graft, infrastructure, unemployment and red tape makes one wonder why this time may be different. But, as John Follain and Alessandra Migliaccio report, the banker-turned-prime-minister has cash, experience and a reputation for fixing things. Social crackdown | The Indian government issued a final warning to Twitter yesterday to comply with new rules for social media or face "consequences." The rules require services such as Twitter, Google, YouTube, Facebook and WhatsApp to appoint representatives to redress grievances or face penalties, including jail terms. Telecoms operators in Nigeria shut off access to Twitter on Saturday after the government suspended operations because it deleted a post by President Muhammadu Buhari threatening to crack down on separatists. What to Watch This Week China's muted reaction to a U.S. military flight to Taiwan spurred online criticism from nationalists. Biden hosts NATO chief Jens Stoltenberg today, before a NATO summit in Brussels next week. The U.S. is expected to announce actions against trafficking and smuggling as Vice President Kamala Harris visits Guatemala today before heading to Mexico. U.K. Prime Minister Boris Johnson risks his first parliamentary defeat with a backbench rebellion over a planned cut to overseas aid. China hosts foreign ministers from Southeast Asian nations this week when they'll discuss cooperation to stem the coronavirus pandemic. Thanks to the two dozen people who answered our Friday quiz question and congratulations to Don Sinko, who was the first to name the Pan-African Parliament as the regional legislature that descended into chaos last week over a dispute about whether to rotate the body's presidency. And finally ... While Republicans have blocked the U.S. government from producing a comprehensive accounting of the Jan. 6 insurrection, ordinary people are conducting investigations of their own. The self-styled "sedition hunters" are analyzing footage on the internet to bolster the FBI's inquiry, raising concern that untrained vigilantes might broadcast the personal information of innocent people. The Capitol on Jan. 6. 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