“In today’s political environment, it is hard to believe that we get that much support on naming a post office, let alone an international tax treaty.”

“I think this is one of the most complicated issues that’s come up…We will try to address at least the start of it today on a global tax situation that makes no sense to me for America. We’ll be talking about OECD’s Pillar One negotiations. I’m looking forward to the opportunity for my colleagues, on both sides of the aisle, and myself, to hear our witnesses’ testimony and perspective on OECD Pillar One and what the Biden’s administration’s negotiations mean for America…

“The Biden administration is negotiating a bad business deal for America. U.S. companies and taxpayers will foot the bill. This Pillar One deal, negotiated at the Organization for Economic Cooperation and Development, was originally intended to eliminate the digital service tax to create a fair playing field globally. In reality, their proposal will not equalize the playing field, this tax burden will fall disproportionately on American companies, which are nearly half of the largest and most profitable in the world…

“Somehow we are saddled with the idea that if it’s to be, it is up to us and we must be the participants at an unusual level in order to make some of these things work…I was born in America. My business is all America. Everything I’ve done is American…

“The Biden Treasury Department has worked with OECD and foreign governments to craft this Pillar One proposal, instead of with the legislative body, which represents the Americans that will have to pay for this deal. In my eyes, the worst part of this negotiation is Treasury’s complete lack of cooperation with Congress on OECD Pillar One. The Biden administration leapfrogged Congress and put the interest of foreign governments ahead of the concerns of the men and women elected to represent American taxpayers. We will do our due diligence to protect American companies and consumers and ensure they get a good deal. 

“Let’s state the facts here. Two-thirds majority is required in the Senate for enactment of Pillar One. In today’s political environment, it is hard to believe that we get that much support on naming a post office, let alone an international tax treaty. It’s simply not feasible without taking into consideration frequent and significant input from Congress. 

“The aspect I find most ironic? Pillar One falls apart without the United States’ invested interest. Literally, the proposal written by OECD requires the United States to be involved in the final deal. Without America’s taxing rights, Pillar One collapses. That tells me everything I need to know…

“There’s 145 different countries in the OECD. I’m trying to look at some of these…why is it involved in kind of tax policy we are trying to develop?…

“The Biden administration needs to be transparent with Congress on strategy on Pillar One. Congress has requested revenue estimates from the Biden administration. They have failed to follow through on this request. Previously, Secretary Yellen acknowledged that if enacted, Pillar One would reduce U.S. revenues. Through Treasury’s public comment period, U.S. businesses pointed to significant flaws with Pillar One. I’m concerned that the Biden Treasury is putting the interests of foreign governments before U.S. businesses and the American economy. Just this week in the Wall Street Journal, it was noted, the benefit to America still hasn’t appeared from the OECD deal that Treasury and Secretary Yellen just signed America up for. 

“The facts are simple. Through Pillar One negotiation, U.S. companies would bear far more than our fair share out of the 145 countries involved and confirmed this week by JCT estimates. More specifically, if Pillar One would have been in place in 2021, the U.S. would have lost $1.4 billion in tax revenues. At the end of the day, this is about the U.S. economy’s security. Is the Biden administration going to sacrifice the financial success of U.S. businesses in our economy for international accounting bureaucrats’ approval or for Europe to benefit from our economic success?

“We’re not going to stand by idly and watch the Biden administration and Treasury Department sacrifice American tax dollars for political gain. I believe we will find out today that my colleagues feel exactly the same way. This deal diminishes the economic security of the United States at a time of global instability and we just cannot take that risk. 

“I look forward to hearing from our panel of witnesses to discuss with this subcommittee their expertise when it comes to OECD and international tax and I appreciate their outlook on Pillar One.”