UK refuses to back Biden push for minimum corporation tax -The Telegraph By Reuters

(Reuters) -The UK treasury is refusing to back a global overhaul of corporation tax championed by U.S. President Joe Biden unless the White House supports its demand to crack down on U.S. tech titans, The Telegraph https:// reported on Monday, citing treasury sources.

Britain has not yet given the proposal its backing as it is pushing for strict rules that specifically target Silicon Valley titans such as Alphabet (NASDAQ:GOOGL) Inc’s Google and Facebook Inc (NASDAQ:FB) , the report added, citing the sources.

“We’re not going to rush to sign up without a proper, more detailed deal on where tech companies pay their tax, something that you’re confident can be pushed through Congress,” a Treasury source told the paper.

The UK treasury department did not immediately respond to Reuters’ request for comment.

Earlier in the day, Britain welcomed the United States’ commitment to finding a solution, but did not comment specifically on the U.S. proposal.

“It’s crucial that any agreement ensures digital businesses pay tax in the UK that reflects their economic activities,” a spokesman for Prime Minister Boris Johnson had said.

Other European states like France, Germany and Italy have supported the U.S. proposal for a global minimum corporate tax rate of at least 15%, saying it was a good basis for sealing an international deal by July.

U.S. Treasury Secretary Janet Yellen first proposed a 21% U.S. corporate minimum tax in April as part of Biden’s $2.2 trillion infrastructure spending proposal, which would be financed largely by increasing the U.S. corporate tax rate to 28%.