Biden welcomes a “historic” rebound as the United States adds 850,000 jobs …

Biden welcomes a “historic” rebound as the United States adds 850,000 jobs …

President Joe Biden on Friday supported the “historic” US rebound from the COVID-19 crisis with the economy’s new jobs of 850,000 in June, solidifying evidence of widespread recovery. I did.

The Ministry of Labor said in a closely monitored monthly report that it came after two months of disappointing results, better than expected.

With the latest profits, the world’s largest economy added 3.3 million jobs in the first half of this year.

“This is a historic step forward, bringing our economy out of the worst crisis of 100 years,” Biden said at the White House.

The Democratic president acknowledged the large-scale US rescue program approved in March and the rapid acceleration of vaccination as factors driving economic recovery.

“Our economy is moving and COVID-19 is running,” Biden said, but admitted that there is still much to do.

Data show that last month’s unemployment rate rose from 5.8% in May to 5.9%, and the unemployment rate for black workers rose a tenth point to 9.2%.

The data also showed that the economy is still short of 6.8 million jobs compared to February 2020.

Biden called for more “significant investments” in the infrastructure outlined in his American employment plan, such as childcare and higher education, as well as roads and bridges.

“It will help us create better jobs, reduce the burden on working families, and strengthen our economy-it will strengthen it in the long run,” the president said. It was.

The United States curtailed pandemics, allowing Americans to participate in professional sports games, travel, eat out, and celebrate weddings directly.

According to the report, the sector is being hired rapidly, adding 343,000 positions last month. However, there is still a shortage of 2.2 million jobs from pre-pandemic levels.

Education has gained 230,000 positions at the state and local government levels, and manufacturing has gained 15,000. But construction lost jobs and more workers saw their time increased.

“Today’s report is shy about the coveted 1 million mark, but it depicts a steadily recovering job market,” said Lydia Busur of Oxford Economics. ..

She said many companies continue to report that it is difficult to find someone to fill the job offer, but strong performance is “a series of stellar reports supporting the strongest US economic performance since 1951 this year. It’s likely to be the beginning. “

Labor shortages have also boosted wages, according to the report, with an average hourly wage increase of 10 cents in June to $ 30.40, a significant increase in May and April.

Biden said Dynamic upsets the balance of power in favor of workers and “empowers workers to demand that they be treated with dignity and respect.”

“More work, better wages. It’s a good combination,” he said.

Wall Street is enthusiastic about the “Goldilocks” report, which seems to have eased investor concerns that rising wages will cause uncontrollable inflation, with all three major indices on the July 4 holiday weekend. Prior to that, we announced a new record.

Still, struggling to find workers when businesses reopen has become a political issue, and Republicans have accused the federal government of generous unemployment benefits, saying they are on the sidelines of potential jobs. ..

As a result, 22 state governments ended supplementary unemployment benefits early, and four other states announced plans to follow, despite facing legal issues. Additional benefits will expire in September.

Federal Navy Cooperative Robert Flick said there were signs of good news, downplaying the rise in unemployment.

“Unemployment is rising as more Americans want jobs, and better employment of teachers will allow children to return to school and more than a million parents to return to work. There will be a synergistic effect in the coming months as it will enable, “he said about the data.

Meanwhile, the widest measure of unemployment has fallen below 10% for the first time since the outbreak of the pandemic.

Its “U6” rate peaked at just under 23% in April 2020, including those who work part-time due to the inability to find a full-time job and discouraged workers who are not looking for a job. did.

Still, the numbers show some mixed results as the ranks of long-term unemployed, who have been unemployed for more than 27 weeks, have recovered after the fall in May.

In addition, employment in the automotive sector has declined by more than 12,000. Economists say this is related to the global shortage of semiconductors that are hindering production and the closure of factories each summer.

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High-tech giants and tax havens covered by the historic G7 agreement

High-tech giants and tax havens covered by the historic G7 agreement

The United States, the United Kingdom and other large and wealthy countries squeeze more money from multinational corporations such as Amazon and Google to reduce the incentive to transfer profits to low-tax offshore shelters. Agreement was reached.

Hundreds of billions of dollars could flow into government finances that have been monetized by the COVID-19 pandemic after the Group of Seven has agreed to support a global corporate tax rate of at least 15%.

Facebook said it expects more taxes to be paid in more countries as a result of the deal.

UK Treasury Minister Rishi Sunak, after chairing a two-day conference in London, said, “The G7 Finance Minister has reached a historic agreement to reform the global tax system to suit the global digital era. I did. “

Held in a splendid 19th-century mansion near Buckingham Palace in central London, the conference was the first time the finance minister met in person since the pandemic began.

US Treasury Secretary Janet Yellen said a “significant and unprecedented commitment” would put an end to the race to the bottom of global taxation.

Germany’s finance minister Olaf Scholz said the deal was “bad news for tax havens around the world.”

Yellen also saw the G7 meeting as a return to multilateralism under Biden, in contrast to former President Donald Trump’s approach of alienating many U.S. allies. ..

“What I saw at this G7 was deep collaboration and the desire to coordinate and address a wider range of global issues,” she said.

Ministers also agreed to allow companies to declare their environmental impact in a more standard way so that investors can more easily decide whether to invest. This is an important goal of the UK.

The current global tax system dates back to the 1920s and is a struggle against multinational tech companies that sell services remotely and attribute much of their profits to intellectual property held under low tax jurisdiction.

“We hope the international tax reform process will be successful, which will allow Facebook to pay more taxes in different places,” said Nick Clegg, Facebook’s Vice President of Global Affairs and former Deputy Prime Minister of the United Kingdom. I am aware that it can be

However, at the G20 conference in Venice next month, Italy, which seeks broader international support for the plan, said the proposal was not just for US companies.

Yellen said European countries will abolish existing digital service taxes. The United States says it will discriminate against US companies when new global rules come into force.

“There is a general consensus that these two things are closely related,” she said.

Important details will be negotiated over the next few months. The agreement on Saturday states that only “the largest and most profitable multinationals” will be affected.

European countries were worried that this would exclude Amazon, which has a lower rate of return than most tech companies, but Yellen expected it to be included.

The method of distributing tax revenue has not been finalized, and any transaction must pass through the US Congress.

France’s Treasury Minister Christophe Lemaire called 15% the “starting point” and said he would push for a minimum tax hike.

Some campaign groups have accused them of lacking ambition, said Max Lawson, head of inequality policy at Oxfam, “because they set low standards. Companies can get over it. “

However, Ireland’s Treasury Minister Paschal Donohoe said the country could be affected by the 12.5% ​​tax rate.

The G7 includes the United States, Japan, Germany, the United Kingdom, France, Italy and Canada.

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G7 countries “only 1 mm” from historic tax treaties

G7 countries “only 1 mm” from historic tax treaties

France and Germany are approaching a historic agreement on Friday after a day’s talks in London that some of the world’s wealthiest countries will close their network to large companies that do not pay fair taxes. Stated.

The finance ministers of seven wealthy countries have met in person for the first time since the COVID-19 pandemic began.

Wealthy countries have struggled for years to agree on ways to collect more taxes from large multinationals such as Google, Amazon and Facebook.

France’s Finance Minister Bruno Lemer told the BBC, “We have only one millimeter left to reach a historic agreement.”

Germany’s finance minister, Olaf Scholz, said he was “absolutely confident” that an agreement would be reached by the end of Saturday’s meeting.

“We will have a contract that will really change the world.”

Now that the pandemic of the new coronavirus has emptied its financial resources, the deal could raise tens of billions of dollars in government.

However, there remains a great deal of disagreement about the minimum tax rate to be levied on companies and how to develop rules to ensure that large, low-margin companies such as Amazon face tax increases.

The United States is proposing a global corporate tax rate of 15%, which is above the levels of countries such as Ireland but below the G7 minimum.

Lemaire said this was “just a starting point.”

“We need something we can trust,” he added. “We are still working on this very tricky point of rate.”

The UK said the tax talks were productive, but disagreements still remain. The discussion continues with a supper.

Due to COVID-19 restrictions, the ministerial delegation has been reduced. The seating arrangement of the ornate Lancaster House, built in the 19th century, has been redesigned with the help of health authorities.UK Finance Minister Liss Snack welcomes leaders with elbows instead of shaking hands

Snack, who has emphasized the importance of meeting in person to reach an agreement, told ministers earlier that other countries in the world are watching the progress.

“We can’t continue to rely on the tax system that was mostly designed in the 1920s,” he said.

Lemaire said the deal would signal an important signal that the G7 (US, Japan, Germany, UK, France, Italy and Canada) could still be influential.

At the G20 conference in Venice in July, any transaction will require broader global approval.

A source close to the negotiations said, “It will be talked about soon.” “The United States, like us, maintains their position.”

Japan’s finance minister, Taro Aso, said Monday that he did not expect to reach an agreement this week on a particular minimum tax rate.

The US Treasury hopes that a more complete agreement will be reached when Mr. Byden and other government leaders meet in the UK from June 11th to 13th.

Mr Biden had planned to raise the US domestic corporate tax rate to 28%. But on Thursday, he proposed leaving the tax rate unchanged at 21%, but offered a deduction and a 15% tax floor after deduction to gain Republican support for the new spending.

But just as important for the UK and many other countries, large multinationals have more taxes where they make profits and where they headquarter, as well as where they sell. Is to pay.

“Their business model gives them the opportunity to avoid far more taxes than any other company,” Scholz said.

The United States wants to abolish the digital service taxes imposed by the United Kingdom, France and Italy, and sees the tax system used by European companies as unfairly targeting US high-tech giants.

UK, Italy and Spain’s exports of fashion, cosmetics and luxury goods to the United States will face a new 25% tariff later this year, if not compromised.

The United States is proposing to impose a new global minimum tax only on the 100 most profitable companies in the world.

The UK, Germany and France are tolerant of this approach, but want to keep companies like Amazon, which have lower profit margins than other tech companies, from escaping the net.

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