In Germany, Ways & Means Members Highlight How OECD Global Tax Deal Harms Jobs, Emboldens China, and Would Spark Global Tax Instability.

BERLIN – Top German finance officials met with Ways and Means Chairman Jason Smith (MO-08) and Committee members to discuss Americans’ deep concerns with the global tax surrender negotiated by President Biden at the Organization for Economic Development and Cooperation on Monday.

The bilateral meetings were with German Finance Minister Christian Lindner, Federal Minister for Special Affairs of the Chancellery Wolfgang Schmidt, and Chairman Alois Rainer and members of the German Bundestag’s Finance Committee.

During these meetings, Members made clear that the OECD’s proposed global tax deal would give foreign competitors like China an economic advantage because they would never fully comply with the agreement. Meanwhile, the United States would surrender over $120 billion of tax revenue over the next decade. Given the Biden Administration’s lack of constitutional authority to write U.S. tax laws, Members explained that Congress would not pass into law any OECD tax deal that permits foreign countries to impose unfair taxes on American workers and make the United States less competitive in the global economy.

Chairman Smith also reiterated Republican opposition to the UTPR surtax in Pillar 2 that would uniquely hurt innovative American businesses. Foreign countries should never be allowed to unfairly tax the domestic operations of American businesses.
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