WASHINGTON, D.C. – The Biden Administration’s OECD/G20 global minimum tax announcement is hardly a “foreign policy victory” for the American people, argues the top Republican on the House Ways and Means Committee Rep. Kevin Brady (R-TX):
“Foreign countries are happy to take American jobs and our tax revenue. Unbelievably, the Biden Administration is offering both.
“Even then, this framework is premature because foreign countries want it both ways: a global minimum tax where America has the highest taxes in the world and then foreign governments continue to steal our tax base by imposing digital taxes on American businesses.
“This is an economic surrender to China, Europe and the world that Congress will reject.”
- President Biden’s plan is not a victory for America, but a surrender.
- American companies would pay this higher global minimum tax for operating abroad while also paying Biden’s 28 percent rate for operating at home—making America even less competitive and driving jobs, manufacturing, research, and investment overseas.
- The “15 percent global minimum tax” would have foreign countries maintain a lower tax rate for their own companies earning profits in foreign markets than American companies.
- For American companies, President Biden would go even further. He would tax American companies at 26.25 percent minimum tax on their foreign profits, 10 percentage points more than the 15 percent G7 rate.
- Biden’s plan offers foreign countries a sweetheart deal, while his punitive tax on Americans will send jobs to foreign competitors.
- Despite the fanfare surrounding the Administration’s foreign tax deal, this global tax cabal is no cause for celebration. It confirms President Biden’s willingness to surrender American jobs and provide protection to foreign competition—not to American companies and workers.