US House Republicans have introduced legislation aimed at protecting American jobs and economic growth from the OECD’s global minimum tax.
The Defending American Jobs and Investment Act comes on the heels of President Trump’s executive order to cancel US involvement in the global minimum tax scheme.
The Biden Administration had long been negotiating the global minimum tax at the OECD level. However, Trump believes that the tax gives foreign nations the authority to place discriminatory taxes on American companies.
The legislation is aimed at protecting American jobs and economic growth with reciprocal taxes applicable to any foreign country that decides to target Americans with unfair taxes under the global minimum tax.
Jason Smith, Chairman of the House Committee on Ways and Means, said: “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. Now with President Trump in the White House, we finally have a leader who will defend American workers and businesses against economic attacks by other nations.”
Smith added: “One of the Trump Administration’s first actions was to reject the OECD framework that would have destroyed US jobs, forfeited an estimated USD 120 billion in tax revenues, and enhanced China’s competitive advantage. The Defending American Jobs and Investment Act will ensure that President Trump has every tool at his disposal to pushback against any foreign country that seeks to undermine America’s economic vitality or unfairly target our workers and businesses.”