House GOP Pushes Back Against OECD

Adam N. MichelThe House Ways and Means Committee Republicans recently released legislation to retaliate against individuals and businesses based in countries that impose extraterritorial taxes on American companies. The proposal is a  reaction to ongoing efforts by the OECD to coordinate a global tax increase on large multinational companies.Instead of raising taxes, Congress should stop funding the OECD and focus on making the United States the most attractive place to do business.TheRepublican proposal would have Treasury identify extraterritorial and discriminatory taxes levied by other countries on U.S. companies. Individuals and corporations based in the offending countries would then face higher tax rates on their U.S. income. The legislation specifically targets the OECD ’sunder ‐​taxed profits rule (UTPR) anddigital services taxes (DST). UTPR allows foreign countries to tax profits earned outside their borders if effective tax rates are lower than 15 percent. UTPR is one offive OECD ‐​proposed rules that will enforce its proposed global minimum tax.Biden Boxes Congress InBy working with the OECD to develop theirTwo ‐​Pillar plan to increase global corporate taxes and then agreeing to the proposed outline for the new rules, the Administration has given Congress few options to reassert their legislative powers and protect American businesses from higher taxes. The Two ‐​Pillar proposal is intended to more comprehensively tax the profits of multinatio...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs