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Smith, Crapo: “Latest OECD Guidance Acknowledges Biden’s Global Tax Surrender is Unworkable and Unlawful”

July 17, 2023

Washington, D.C. – After the Organization for Economic Cooperation and Development released new guidance showing major changes on the global tax regime that would surrender American tax dollars to foreign governments, House Committee on Ways and Means Chairman Jason Smith (MO-08) and Senate Finance Committee Ranking Member Mike Crapo (R-ID) issued the following joint statement:

“Once again, the Biden Administration neglected to consult Congress before cheerleading the OECD’s latest global tax code rewrite. Today’s ‘administrative guidance’ acknowledges what Republicans have warned for more than two years: the UTPR surtax is unworkable and unlawful.

“By exposing the UTPR’s fundamental flaws, congressional Republicans created an opportunity for the OECD to reconsider this illegal extraterritorial tax which violates U.S. sovereignty. Shockingly, the Biden Administration failed to follow through, surrendering to foreign country demands to allow the UTPR to hit U.S. workers and businesses starting in 2026. Moreover, the OECD’s nonsensical treatment of investment incentives remains, which will send U.S. R&D jobs and tax revenues overseas.

“If other countries move forward to attack U.S. jobs and tax revenues through the UTPR, Congress will be forced to pursue additional remedial measures to protect American interests.”

On Wednesday, July 19, 2023, the Tax Subcommittee of the Ways and Means Committee will hold a hearing on how Biden’s global tax surrender hurts workers and the American economy. Click here to read the hearing notice.