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G-7 agrees to 15% minimum corporate tax rate: Here's how the headlines can affect your money

The agreement ensures "fairness for the middle class and working people in the U.S."

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US Treasury Secretary Janet Yellen speaks during a press conference at Winfield House in London on June 5, 2021, after attending the G7 Finance Ministers meeting.
Justin Tallis | AFP | Getty Images

Markets ended the week up, the G-7 agrees to a minimum tax, and a lot of people developed better financial habits during the pandemic. Here's how the news could affect your money.

Markets close the week on high note

All three major U.S. indexes were up Friday, capping winning weeks across the board: The Dow, S&P, and Nasdaq grew 0.7%, 0.6%, and 0.5% for the week, respectively.

Markets were down Monday morning.

G-7 countries agree to minimum tax

The finance ministers of some of the world's richest economies, known as the Group of Seven, have backed a U.S. proposal calling for major corporations to pay at least a 15% tax. The Biden White House had initially suggested a minimum global tax rate of 21% in an attempt to prevent countries luring international businesses with low or zero taxes.

Treasury Secretary Janet Yellen tweeted that a "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."

Better money habits post-pandemic

Nearly a third of Americans say their discipline with money improved during the last year, during the pandemic, and 95% of those think that mindset will outlast the Covid shutdown, according to an annual survey by Northwestern Mutual.

A third of Americans paid down debt during the pandemic and another third said they invested more, researchers found.

VIDEO1:0601:06
Suze Orman explains emergency savings

Video by Stephen Parkhurst

Words you've heard: reward program liability 

Companies often offer customers a loyalty reward program that lets them accrue points in exchange for services. Reward program liability is the potential cost to the company if those points were to be redeemed. 

A recent review of five U.S. airlines by ValuePenguin found that reward program liabilities grew to a combined $27.5 billion last year, a year-over-year spike of 11.6%, as customers who had earned rewards through credit card spending during the pandemic did not redeem them.

The glut of unused points could push airlines to revise their frequent flyer programs and increase the number of points it takes to travel, experts say.

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