The Biden Administration has made tax promises to the world without consulting Congress, and has ignored Ways and Means Republicans’ requests for revenue estimates. Not only does the agreement surrender American tax revenue to foreign competitors, but it also undermines Congress’s authority over U.S. tax law.
In a new letter to Secretary of the Treasury Janet Yellen, Ways and Means Republican Leader Rep. Kevin Brady (R-TX) and Rep. Kevin Hern (R-OK) urged the Department of the Treasury to preserve all documents related to the Biden Administration’s global tax surrender. This is part of Republicans’ Commitment to America in promoting an economy that is strong and holding Washington accountable.
CLICK HERE to read the letter.
The members wrote:
“It is wholly impossible for Congress to do its job with regards to Pillar One without an understanding of the proposed shifts of inflows and outflows. In addition, Congress cannot offer approval or advise the Administration on what Congress would find acceptable without this information.”
“Therefore, despite the Administration’s inadequate response to our repeated requests for this information, we reiterate our requests as made in our June 2021 and June 2022 questions for the record, and we request that the Administration provide the information requested in H. Res. 1269, which are attached here for your reference. Moreover, we write to insist that you take all appropriate measures to collect and preserve all documents, communications, and other records that are relevant to the OECD Pillar One agreement.”
Biden’s tax plan is an economic surrender to America’s foreign competitors.
- The Biden Administration’s global tax plan offers foreign countries a sweetheart deal: American companies will pay a global minimum tax rate many points higher than the 15 percent rate the Biden Administration will allow for other countries.
- This economic surrender will make America less competitive and will drive manufacturing, research, and investment overseas.
As the branch of government responsible for setting tax policy, it is essential that Congress receive this vital information.
- The Biden Treasury has so far refused to provide to Congress estimates and analysis of whether proposed international tax rules with the Organization of Economic Cooperation and Development (OECD) would result in the loss of revenue to foreign governments.
- It is essential that Congress have access to this information so it can understand where the United States may end up sending its tax revenues and how it could factor into larger geopolitical considerations.
- If the Administration continues to deprive Congress of this essential information, the ultimate harm will fall on U.S. negotiators losing credibility abroad.
Republicans want to hold the Administration accountable and are fighting against Biden’s tax hikes that would shrink our already shrinking economy.
- In September 2021, Rep. Brady and Sen. Crapo sent a letter to their Democratic counterparts outlining serious concerns with the approach the Biden Administration has taken in international tax negotiations at the OECD.
- In October 2021, Rep. Brady and Sen. Crapo warned that compelling Congress to take specific legislative action undermines Congress’s taxing authority, and would ultimately make American companies less competitive globally.
- Brady and Crapo have consistently said the Administration should not negotiate for an agreement at the OECD that would target American companies or make them less competitive, ultimately resulting in fewer jobs, growth, and U.S. investment.