East Idaho Times

Washington D.C.--The United States could face significant revenue losses under the current global tax deal negotiations being handled by the Biden Administration, as reported by the nonpartisan Joint Committee on Taxation (JCT). The analysis indicates that a substantial portion of the profits subject to reallocation under the OECD's Pillar One plan would originate from U.S.-based companies.

In response to these findings, U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and U.S. House Ways & Means Committee Chair Jason Smith (R-Missouri) have jointly expressed their concerns. They highlighted the potential negative impacts of the deal, stating, "JCT estimates the U.S. will lose billions of dollars under this deal which overwhelmingly affects American companies." The lawmakers further emphasized that the proposed agreement could lead to increased complexity, undermine tax sovereignty, introduce distortive behaviors, and create inefficient incentives, raising doubts about its effectiveness in providing tax certainty and stability for American businesses in the global market.

Crapo and Smith firmly stated their opposition to discriminatory taxes targeting American companies but cautioned against rewarding foreign countries for such practices. They urged the Biden Administration to reconsider committing to the current version of the deal, emphasizing the importance of negotiating a more favorable agreement for American workers and businesses. The lawmakers stressed the necessity for robust Congressional consultation to ensure that any global tax deal serves the best interests of the United States.

As the Biden Administration considers its stance on the OECD's global tax proposal, the voices of Crapo and Smith underscore the critical need to prioritize American economic interests and ensure that any international agreement safeguards the country's revenue and competitiveness.