Senate Finance Committee Republicans are calling for the Treasury Department to analyze the recent Organisation for Economic Co-operation and Development (OECD) agreement.
Ranking Member Mike Crapo (R-ID) spearheaded an effort in which each member of the Finance Committee signed correspondence to Treasury Secretary Janet Yellen requesting information regarding international tax negotiations.
“We remain focused on ensuring the agreement reached at the Organisation for Economic Co-operation and Development (OECD)/G20 regarding international taxation allows U.S. businesses and workers to remain globally competitive,” the legislators wrote. “Because this Administration has failed to provide us with the detail necessary to evaluate the agreement, we renew our request for this information. U.S. engagement in the OECD negotiations has historically received broad, bipartisan support given the key objective of eliminating discriminatory digital services taxes (DSTs).”
The legislators indicated there are concerns with the lack of detail underlying the approach proposed under Pillar One and its
lack of foundation in tax principles.
“Of further concern is Treasury’s continued insistence that the United States once again move first on a global minimum tax — this time by significantly increasing the U.S. global intangible low-tax income (GILTI) minimum tax in line with Pillar Two,” the lawmakers concluded. “The United States already acted first four years ago when it enacted the GILTI minimum tax. Yet the United States remains the only country that imposes a global minimum tax on its companies. As Pillar Two does not require other countries to adopt a global minimum tax, we are not confident that our biggest foreign
competitors, like China, will enact and implement a global minimum tax on the same terms or on the timeline agreed to at the OECD.”