Bean Joins Ways and Means Colleagues to Reinforce President Trump’s Rejection of Biden’s Global Tax Surrender

WASHINGTON—In the fight to restore our nation’s sovereignty and economic competitiveness, U.S. Congressman Aaron Bean (FL-04) joined his fellow Ways and Means Committee members to introduce H.R. 591, the Defending American Jobs and Investment Act. This timely bill will reclaim America’s taxing authority and discourage foreign countries from imposing unfair taxes on American businesses and workers. 

The introduction of this bill comes on the heels of President Trump’s executive order to cancel U.S. involvement in the global tax scheme, which the Biden Administration had been negotiating at the Organization for Economic Co-operation and Development (OECD) that gives foreign nations the authority to place discriminatory taxes on American companies.

Upon introduction, Congressman Bean said: “The Biden-Harris administration’s global minimum tax scheme was a bad deal for America. It would have hurt our economy and destroyed U.S. jobs while serving to enhance China’s competitive advantage. With this bill, we are taking the next and necessary step to protect our sovereignty, restore our economic strength, and put America first.”

BACKGROUND 

The Defending American Jobs and Investment Act, co-sponsored by every Republican Member of the Ways and Means Committee, protects American jobs and economic growth with reciprocal taxes applicable to any foreign country that decides to target Americans with unfair taxes under the OECD’s global minimum tax:

• Requires the Treasury Department to identify extraterritorial taxes and discriminatory taxes enacted by foreign countries that attack U.S. businesses, such as the UTPR surtax.
• After the unfair foreign taxes have been identified, the tax rates on U.S. income of wealthy investors and corporations in those foreign countries will increase by 5 percentage points each year for four years, after which the tax rates remain elevated by 20 percentage points while the unfair taxes are in effect.
• The reciprocal tax ceases to apply after a foreign country repeals its extraterritorial and discriminatory taxes.
• The reciprocal tax will remain dormant as long as countries avoid any unfair taxes on U.S. businesses and workers. Several countries have already made the wise decision to exclude the UTPR surtax from their implementation of the OECD global minimum tax.

The Joint Committee on Taxation (JCT) issued an analysis finding that the United States stands to lose over $120 billion in tax revenues under the OECD’s global minimum tax scheme.

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