PARIS – In a meeting with the Organization for Economic Co-operation and Development (OECD), the international association coordinating the global tax deal, members of the House Ways and Means Committee, led by Chairman Jason Smith (MO-08), made clear that countries that try to use the OECD global tax deal to steal away American jobs and tax revenues can expect economic consequences in the future. Chairman Smith was joined in the meetings by the following Committee members:
Rep. Ron Estes (KS-04)
Rep. Kevin Hern (OK-01)
Rep. Carol Miller (WV-01)
Rep. Greg Murphy (NC-03)
Rep. Michelle Steel (CA-45)
Rep. Randy Feenstra (IA-04)
Rep. Nicole Malliotakis (NY-11)
The deal negotiated by the Biden Administration, without consulting Congress, surrenders America’s sovereignty over our tax laws, gives foreign competitors like China an economic advantage, and would cause the United States to forfeit over $120 billion of tax revenue over the next decade. The Biden Administration has no constitutional authority to write U.S. tax laws, and their negotiations at the OECD would permit foreign countries to impose unfair taxes on American workers and make the United States less competitive in the global economy.
Most egregiously, the “UTPR surtax” in OECD Pillar 2 allows foreign countries to tax U.S. businesses on profits earned in the United States, including clawing back key tax incentives like those for conducting research and innovation activities in the U.S. In May, every Ways and Means Republican joined Chairman Smith in introducing the Defending American Jobs and Investment Act, which would impose a reciprocal tax measure on multinational companies and wealthy investors from countries that try to use the UTPR to tax U.S. workers and productivity for their own gain.