A new effort by President Biden to collaborate with leaders of Russia, China, and other governments will result in American workers and businesses paying higher taxes to finance wasteful spending in the U.S. and across the world, according to recent remarks by Treasury Secretary Janet Yellen. The Biden Administration is actively seeking cover behind a multi-country tax agreement to hide the fact that their massive tax hikes will be shouldered by American workers and small businesses.

Key Takeaways:

President Biden knows the consequences of his tax hikes will be sending Americans’ jobs overseas, so he’s trying to get foreign leaders to agree to tax hikes too.

• Biden’s tax hikes will send American jobs overseas and reduce wages and economic opportunity for American workers, families, and businesses.
• Now Democrats think that working with foreign governments–even our competitors—will prevent U.S. workers and businesses from losing out to their foreign peers.
• Foreign countries will never raise their taxes as high as Biden’s U.S. tax hikes—they know too well how important competitive tax rates are for attracting jobs and growth.

Democrats shouldn’t strip Americans of their voice in determining how we fund our government and hand it to foreign governments.

• For over 200 years, a key part of the American system has been ensuring local communities–workers, families, and small businesses–had a say in federal tax policy. That’s why all revenue measures go through the House.
• Yet Democrats want to take that power away. Recently, Democrats even snuck in a special  provision granting federal bureaucrats veto power over state tax cuts until 2024 as a condition of receiving state and local aid that Democrats insisted they take.
• Now, with Americans’ jobs on the line, President Biden isn’t standing with our workers, but is asking leaders of foreign competitor nations to help reduce the negative effects of his tax hikes.

Democrats want to forfeit the gains of Republican tax reform under the guise of a global agreement to “end the pressures of tax competition.”

• Republican tax reform got results:
  • By boosting wages, increasing jobs, and reducing poverty, Republican tax reform made the U.S. the most competitive economy in the world.
  • The U.S. grew faster than the rest of the world and was the only G7 industrialized country to record annual real GDP growth exceeding 2 percent in 2018 or 2019.
  • The U.S. growth rate of 2.9 percent in 2018 was significantly higher than other developed countries like Germany, which saw 1.5 percent growth and the United Kingdom, which grew by just 1.3 percent.
• For 8 years, the Obama-Biden Administration was satisfied with a broken tax system that failed to achieve these gains.
• Now Biden wants to turn back the clock, which will harm American workers and businesses and benefit their foreign compeititors.

As Americans for Tax reform notes, “Can the U.S. really trust foreign countries – many of which have a history of undemocratic governance and human rights violations — to play by the rules in a way that ensures American businesses and workers are treated fairly?”