Quantcast

Cape News

Sunday, November 24, 2024

Biden-Harris administration faces GOP backlash over OECD global tax deal

Webp fr0adk0i6lx2r4i5t5utceel1grs

Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Official Website

Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Official Website

On September 18, 2024, in Washington, D.C., the Biden-Harris Administration faced criticism from House Republican leaders over its involvement with the Organization for Economic Co-operation and Development (OECD) to implement a global minimum tax on U.S. businesses. The administration's actions are seen as a threat to U.S. sovereignty and economic competitiveness, potentially forfeiting over $100 billion in tax revenue and violating Constitutional principles by bypassing Congress.

House Speaker Mike Johnson (LA-04), House Majority Leader Steve Scalise (LA-01), House Majority Whip Tom Emmer (MN-06), House Republican Conference Chair Elise Stefanik (NY-21), and Ways and Means Committee Chairman Jason Smith (MO-08), along with every Ways and Means Republican, voiced their concerns in a letter to OECD Secretary-General Mathias Cormann.

"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," wrote 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."

The letter emphasizes that changes in U.S. tax law must originate from the House of Representatives' Committee on Ways and Means. The unilateral negotiations by the Biden-Harris Administration are described as an overreach of authority with significant consequences for American workers and businesses.

Additionally, there is concern that countries like China will exploit loopholes in the OECD global tax deal for direct government subsidies. "China will exploit the OECD global tax deal’s loophole for direct government subsidies, which are a hallmark of Chinese economic activity," states the letter.

The letter also supports a lawsuit filed by the American Free Enterprise Chamber of Commerce challenging the undertaxed profits rule (UTPR). It warns that if OECD proceeds with this aspect of the global minimum tax deal, Congress may need to take countermeasures to protect U.S. sovereignty.

This action follows a visit by Republicans on the Ways and Means Committee to Paris last year, where they expressed opposition to what they term as Biden-Harris Administration’s unilaterally negotiated global tax surrender.

ORGANIZATIONS IN THIS STORY

!RECEIVE ALERTS

The next time we write about any of these orgs, we’ll email you a link to the story. You may edit your settings or unsubscribe at any time.
Sign-up

DONATE

Help support the Metric Media Foundation's mission to restore community based news.
Donate

MORE NEWS