Cape News

After President Trump issued an executive order to reject the Biden Administration's global tax agreement with the Organization for Economic Co-operation and Development (OECD), Ways and Means Chairman Jason Smith expressed his support. Smith stated, "President Trump has always put America first, which is precisely why he is standing up for Americans against foreign governments who want to tax our workers and businesses unfairly, kill American jobs, and hand China an advantage."

The executive order calls on the Treasury Department to investigate countries that may violate tax treaties or create discriminatory tax rules against American companies. It also directs the department to prepare retaliatory measures to protect the U.S. economy. Smith emphasized that "Ways and Means Republicans will be re-introducing the Defending American Jobs and Investment Act" to support these efforts.

Smith criticized the previous administration's approach, stating, "Congress writes the laws, not bureaucrats negotiating behind closed doors. This deal has no path forward in Congress." He also highlighted past efforts by himself and fellow committee members to oppose the OECD negotiations.

In 2023, several hearings were held where concerns about potential negative impacts on American jobs and revenues from the OECD global tax scheme were raised. During a meeting with OECD officials and representatives from France and Germany in September 2023, Smith warned of possible economic consequences if they pursued policies harmful to U.S. interests.

Throughout 2023, various legislative proposals were introduced by Republican committee members aimed at countering what they perceived as threats from international tax agreements negotiated under President Biden's administration.