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Biden’s Treasury Admits Tax Policy Failure, Offers Remedy from Committee Passed American Families & Jobs Act

July 26, 2023

WASHINGTON, D.C. – After the Biden Treasury Department released guidance echoing a policy included in the recent Committee passed American Families & Jobs Act to provide a delay on their own misguided foreign tax credit regulations, House Committee on Ways and Means Chairman Jason Smith (MO-08) and Committee Member Rep. Kevin Hern (OK-01) issued the following statements:


Chairman Smith said, “Republicans won a victory for American workers and businesses now that the Biden Treasury Department announced a delay for rules that penalize businesses working to exit China and bring their operations closer to home. Ways and Means Republicans had been sounding the alarm with legislation – the Supply Chain Security Act, introduced by Rep Kevin Hern (R-OK) and passed through Committee last month– to roll back this misguided policy. But we need to do more to eliminate the Biden Administration’s bad tax policies and to reduce our dependence on China. I call on the Biden Administration to create a permanent fix to this regulatory overreach and to reject other tax rules that harm U.S. workers and businesses, including the global tax surrender being negotiated at the OECD.”

“The Treasury has finally come to its senses to provide relief from its deeply flawed foreign tax credit regulations. No business that takes the risk of investment deserves to be double-taxed. The pandemic revealed vulnerabilities in the global supply chain, highlighting the importance of encouraging investment in emerging markets,” said Rep. Hern. “Treasury’s two-year delay on the flawed regulations will ensure that businesses continue to focus on creating regional integration to strengthen the supply chain and address gaps exposed by the pandemic. I will continue fighting against bad tax policies that discourage investment and job creation.”