Carol Miller
09/18/2024 | Press release | Distributed by Public on 09/18/2024 15:42
Miller, W&M Republicans, House Republican Leadership Send Letter to OECD Secretary General on Biden Harris Admin Global Tax Deal
September 18, 2024
Washington, D.C. -Yesterday, Congresswoman Carol Miller (R-WV) joined all Ways and Means Republicans and U.S. House Republican leadership in sendinga letter to the Organization for Economic Co-operation and Development (OECD) warning that the Biden-Harris administration's collusion with foreign governments of the OECD would impose a global minimum tax on U.S. businesses. The letter highlights how the OECD is subjecting U.S. employers to a new undertaxed profits rule (UTPR), surrendering U.S. sovereignty and economic competitiveness, forfeiting over $100 billion in tax revenue, and violating Constitutional principles by attempting to coerce Congress to implement a deal that the Administration has no authority to implement.
Joining Congresswoman Miller in sending the letter are House Speaker Mike Johnson (R-LA), House Majority Leader Steve Scalise (R-LA), House Majority Whip Tom Emmer (R-MN), House Republican Conference Chair Elise Stefanik (R-NY), Ways and Means Committee Chairman Jason Smith (R-MO), and all Ways and Means Committee Republicans.
"Implementation of the UTPR and other OECD policies would force the United States to forfeit $120 billion in revenue to foreign governments while offering competitive advantages to China and others," said House Republican Leadership and Ways and Means Republicans. "Ultimately, the Biden-Harris administration lacks the authority to impose any tax deal on Americans without the approval of the U.S. Congress - doing so would violate the United States Constitution…The United States Constitution expressly grants the taxing power to Congress, not to the President. Specifically, the U.S. Constitution requires that '[a]ll bills for raising revenue shall originate in the House of Representatives.' This constitutional structure makes the Committee on Ways and Means, the tax-writing committee in the U.S. House of Representatives, the only entity where changes in U.S. tax law may originate. Thus, the Biden-Harris administration's unilateral negotiations without consultation with Congress constitutes a major overstep of its authority, with dire consequences for American workers and businesses."In addition to circumventing Congressional authority, the policy puts American workers and businesses at a competitive disadvantage against countries like China who have already indicated a willingness to game the system.
"China will exploit the OECD global tax deal's loophole for direct government subsidies, which are a hallmark of Chinese economic activity. Other countries will likely do the same, thwarting the OECD's stated purpose of ensuring a minimum level of taxation. Ultimately, the UTPR will target U.S. workers and businesses by allowing foreign governments to claw back important U.S. tax incentives (e.g., tax credits for research and development and low-income housing) and attack the operations of American companies in third-party jurisdictions...And even if a country like China were to move forward, there is no assurance that the CCP would play by the rules. For instance, last year it was reported that the Chinese government instructed state-owned companies to phase out their use of the big four accounting firms to address security concerns and Western influence. They were instead instructed to use auditors local to China and Hong Kong, subject to the control of the CCP."
The letter expresses support for a lawsuit filed by the American Free Enterprise Chamber of Commerce that challenges the UTPR and makes clear that should the OECD - in collusion with the Biden-Harris Administration and other countries - proceed with this aspect of the global minimum tax deal, Congress will be forced to pursue countermeasures to protect U.S. sovereignty and the fair treatment of American workers and businesses. Today's action comes one year after Republicans on the Ways and Means Committee traveled to Paris, France to meet with OECD officials and express American opposition to the Biden-Harris Administration's unilaterally negotiated global tax surrender.
Click here for the full letter.
###
Issues:Economy