Members of the Ways and Means Committee, the chief tax-writing committee of the US House of Representatives, have expressed deep concerns about the Biden Administration’s ongoing negotiations with the OECD on the global minimum tax.
In a July 31 letter written to US Treasury Secretary Janet Yellen, 13 members of the Committee rebuked the Biden Administration for its “unprecedented and anti-America concessions throughout the OECD global tax negotiations.”
“It is unacceptable that the Treasury Department has repeatedly failed to consult with Congress on a matter that puts at risk jobs and US tax revenues. The neglect of this constitutional duty undermines the principles of transparency and democratic governance upon which our nation is built,” the members said in the letter.
“As elected representatives and members of the Ways and Means Committee, we must vehemently protest this disregard for the checks and balances that ensure responsible decision-making and the protection of American interests,” they added.
The letter states that the Biden Administration’s concessions during Pillar Two negotiations will result in US companies paying more tax overall, but less to the US. “The message that you and the Administration are sending is clear: foreign governments win, while US companies and taxpayers lose,” they said.
The members also expressed concerns about the Biden Administration’s approach on the OECD’s Pillar One tax proposal.
They said: “It is our understanding that if implemented, Pillar One would reallocate the profits of approximately 100 companies – the majority of which are US companies. It is unproductive that the Biden Administration would consider agreeing to replace discriminatory digital service taxes with something that so disproportionately targets US businesses.”
The members urged the Treasury Department to engage in robust consultations with Congress on the issue.