The Biden Administration is pushing for a global tax surrender without consulting Congress that would harm U.S. competitiveness and American jobs.
Ways and Means Member Rep. Kevin Hern (R-OK) offered a Resolution of Inquiry seeking how much U.S. corporate taxpayer dollars will be sent to Europe or overseas by the Biden Administration for international tax negotiations.
Democrats rejected this request, voting instead to allow Biden’s tax surrender to proceed without any congressional input.
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 prescribing 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.
About Resolutions of Inquiry:
A Resolution of Inquiry (ROI) is a direct request or demand of the President or the head of an executive department to furnish the House with specific factual information in the Administration’s possession. ROIs become privileged on the floor if not reported to the House within 14 legislative days after filing.
Democrats effectively turned off the ability to use an ROI via a pandemic-related rule passed in the last Congress. That rule was continually extended until late July of this year when the majority finally turned on the ROI tool.