Ft Worth Times

Congresswoman Beth Van Duyne helped introduce the Unfair Tax Prevention Act to safeguard U.S. jobs and tax revenues from foreign countries and emphasize the protection of American sovereignty, according to a press release. This follows international tax negotiations by the Biden administration, which Duyne summarized as handing "the keys over to tax writers in Paris."

"This administration could not convince Congress to pass its extremist tax hike agenda, so it handed the keys over to tax writers in Paris," Duyne said. "Unsurprisingly, these tax writers drafted a plan which would attack our tax base, harm our economic strength and transfer wealth from the United States to the coffers of foreign countries — all while giving China a free pass to continue cheating the system. The Biden administration’s global tax surrender is un-American. In case the executive branch needs a refresher, our constitution gives Congress sole tax-writing authority.”

The Unfair Tax Prevention Act safeguards Americans from undue foreign taxation via a reciprocal tax mechanism targeting countries using the OECD agreement, incorporating "foreign-owned extraterritorial tax regime entities" (FETR entities) tied to jurisdictions with extraterritorial taxes affecting U.S. businesses, while enhancing anti-avoidance measures in the U.S. base erosion and anti-abuse tax (BEAT) by modifying thresholds, service payment treatment and BEAT rate adjustments for these entities, the press release reported.

The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental organization with 38 member countries, founded in 1961 that claims to stimulate economic progress and world trade. House Republicans have criticized OECD for its disproportionate negative effect on the United States and its economic competitiveness, The Ripon Advance reported.

The Biden administration's collaboration with the OECD on the two-pillar plan to raise global corporate taxes and subsequent agreement on its outline has left Congress with limited options to assert legislative authority and safeguard American businesses from higher taxes, CATO Institute reported. The two-pillar proposal aims to enhance multinational business profit taxation by elevating effective tax rates and redistributing taxing rights among countries. Multinational businesses under the proposal have a greater likelihood of confronting higher tax rates, heightened tax uncertainty and double taxation.

The United States currently funds almost 20% of the OECD's budget. In March 2023, a group of House Republicans asked the Appropriations Committee to prohibit any U.S. funding for the OECD in next year’s budget.