WASHINGTON, DC – Without congressional input or oversight, the Biden Administration has negotiated a global tax surrender to foreign bureaucrats that will kill American jobs, cost America tax revenue, and hand Communist China a competitive edge in the global economy. A recent Wall Street Journal editorial highlights how Ways and Means Republicans are fighting for American workers and companies – including introducing legislation to combat this global tax surrender – while the Biden Administration allows other countries to exploit America’s productivity and innovation to enrich themselves.
- Biden’s Global Tax Surrender is a Bad Deal for America:
“European and other negotiators also outfoxed Ms. Yellen by securing favorable treatment for tax credits preferred in Europe while punishing the sort of credits and deductions that Congress traditionally offers U.S. companies. The result is a global tax regime that, if implemented, would make the U.S. even less competitive rather than more so.”
- Biden Administration Subverting U.S. Constitution on World Stage: “Speaking of Congress, Ms. Yellen’s enthusiasm for the OECD deal is an attempt to usurp Congress’s constitutional tax-setting power by outsourcing complex tax-policy negotiations to a diplomatic process. The pillar-one tech tax would require the Senate to approve changes to a raft of existing tax treaties with other governments.”
- Ways and Means Republicans Are Standing Up for America’s Interests: “The Republican bill aims to short-circuit all of this by discouraging other countries from pressing ahead with the OECD plan. The enforcement mechanism would be a retaliatory surtax, starting at 5 percent and rising to 20 percent, on corporate and capital income earned in the U.S. by companies and wealthy individuals from countries that impose versions of the pillar-one and pillar-two taxes on U.S. firms…
“Capitol Hill’s opposition has stretched across two Congresses (with new Ways and Means Chairman Jason Smith picking up the baton from predecessor Kevin Brady) and will extend into a Republican Administration if one arrives in 2025.
“That’s good news for U.S. companies, and a major diplomatic embarrassment for Ms. Yellen as Congress warns other governments to treat her tax promises skeptically.”