Finance ministers from the Group of 7 nations on Saturday backed President Joe Biden’s plan to overhaul the global tax system with a minimum tax on corporate earnings.

“G7 finance ministers today after years of discussion have reached a historic agreement to reform the global tax system, to make it fit for the global digital age and, crucially, to make sure that it’s fair so that the right companies pay the right taxes in the right places and that’s a huge prize for British taxpayers,” British Finance Minister Rishi Sunak said in a video posted to Twitter.

“This is a very proud moment, and I want to thank my G7 finance minister colleagues for their collective leadership and for their willingness to work together to seize this moment to strike a deal of historic significance that finally brings our global tax system into the 21st century,” Sunak continued.

The agreement was made at a G7 meeting in London, according to the post.

U.S. Treasury Secretary Janet Yellen, who was in attendance at the meeting, sought backing for the Biden administration’s efforts to overhaul the global tax system, CNN Business reported.

“The G7 Finance Ministers have made a significant, unprecedented commitment today that provides tremendous momentum toward achieving a robust global minimum tax rate of at least 15%,” Yellen said in a statement. “The global minimum tax would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the U.S. and around the world. The global minimum tax would also help the global economy thrive, by leveling the playing field for businesses and encouraging countries to compete on positive bases, such as educating and training our work forces and investing in research and development and infrastructure.”

The move was also announced in G7 Finance Ministers and Central Bank Governors Communique on Saturday, where G7 ministers said they strongly support the adoption of a global minimum tax and “commit to a global minimum tax of at least 15% on a country by country basis.”

The Biden administration proposed last month that the global minimum tax rate should be at least 15% to level the playing field so companies pay their fair share of taxes in their home country instead of shifting profits to other countries to pay less tax.

“With the global corporate minimum tax functionally set at zero today, there has been a race to the bottom on corporate taxes, undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments,” the U.S. Department of Treasury said in a May 20 statement.

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