WASHINGTON – Today, the top Republican on the House Ways and Means Committee Rep. Kevin Brady (R-TX) on the OECD’s newly announced framework for international taxation:
“In negotiations with the OECD, the Biden Administration has already given up significant U.S. ground by opening the door to not grandfathering GILTI and agreeing to a global minimum tax structure that favors foreign-headquartered companies and workers over American ones.
“This is a dangerous economic surrender that sends U.S. jobs overseas, undermines our economy, and strips away our U.S. tax base.
“Further, any agreement at the OECD must result in immediate repeal of all existing digital taxes and prevent any new digital taxes by the EU or others.”
- 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, creation of 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.
- On June 5th, the Biden Administration and other G7 countries announced a so-called agreement for a “15 percent global minimum tax,” that 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.
- 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.