Under a 15% global minimum-tax agreement, U.S.-based multinational companies will begin to pay higher taxes in foreign countries starting next year.
And in 2025, unless Congress acts, that same deal will mean that they will also lose many domestic tax breaks.
Worse yet, as of the following year, U.S. taxes on companies’ foreign income will increase due to long-delayed provisions of the 2017 tax law.
Daniel Bunn, president of the Tax Foundation, which is pushing for lower rates and a simpler system, said that it is unlikely that Congress will address the issue until after the 2024 elections.
