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Inside the plan for a global minimum corporate tax

The G-7 nations have taken a major step toward global tax reform by agreeing to a minimum corporate tax rate of 15% on multinational companies. CNBC's Tom Chitty is joined by Silvia Amaro to explain.
10:29
Fri, Jun 25 20218:03 AM EDT

In June 2021, the leaders of the countries that make up the Group of Seven, otherwise known as the G-7, endorsed a deal to make multinational companies pay more tax.

Governments have been trying to solve the challenge of taxing companies operating across many countries for a long time, and that challenge has only grown with the rise of huge tech corporations.

Corporate tax rates have been in decline for decades. In the last 40 years, the world's biggest economies have made significant cuts. The U.S. has reduced its rates by more than 25%, the U.K. in excess of 30% and Germany by a whopping 40%.

Watch the video above to learn how a proposed global corporate tax hopes to stop a "race to the bottom."