Cape News

The Trump Administration is set to take measures to protect American businesses from foreign taxes, as announced by Ways and Means Committee Chairman Jason Smith and all 25 Committee Republicans. The newly introduced Defending American Jobs and Investment Act follows President Trump's executive order withdrawing the U.S. from global tax negotiations led by the Biden Administration at the Organization for Economic Co-operation and Development (OECD).

Chairman Smith emphasized the Republican stance against what he termed a "global tax surrender," stating, “Congressional Republicans made it clear as soon as the Biden Administration initiated its negotiations with the OECD that the United States would never be party to a global tax surrender." He further highlighted President Trump's commitment to defending U.S. economic interests, noting that one of his administration's first actions was rejecting an OECD framework perceived as harmful to U.S. jobs and revenue.

The proposed legislation aims to safeguard American jobs through reciprocal taxes on foreign countries imposing unfair taxes on U.S. businesses. This includes increasing tax rates on income from these countries' wealthy investors and corporations if they enact such taxes.

The Joint Committee on Taxation has projected a potential loss of over $120 billion in U.S. tax revenues under the OECD’s global minimum tax scheme, which has been a point of contention among congressional Republicans.

In previous engagements, Chairman Smith led a delegation of committee members to meet with leaders in France, Germany, and at the OECD headquarters, expressing strong opposition to any agreements perceived as detrimental to U.S. sovereignty over taxation.