Today’s “Word of the Day” is “backstop” and it is a verb meaning “support, help, assist, back, bolster, prop up, reinforce; to act/serve as a backstop (emergency plan) to”.
Example Sentence: The new global tax agreement consists of two pillars, of which the second is the most important. It backstops the corporate tax rate at 15% across the world by letting governments impose a “top-up” tax on home companies that pay lower than 15% tax on profits they declare abroad. So, if an American company pays only 5% taxes on profits that it declares as that of its subsidiary in Ireland, the U.S. government will now be able to impose a 10% additional tax on these profits.
This word is present in The Hindu article Explained | Why do governments want a global minimum corporate tax rate? and click here to read it.
Courtesy: The Hindu
“Phrasal Verbs” We Learnt Last Week
“Idioms & Phrases” We Learnt Last Week
“Important Definitions” We Learnt Last Week