Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

Want to save this page for later?

News

GOP Bill Targets Global Tax Deal and Foreign Tax Policies

By:
Emma Slack-Jorgensen
Published Date:
Jan 23, 2025

GettyImages-835212946-international-global-taxes-240

House Republicans have introduced the Defending American Jobs and Investment Act (H.R. 591), aiming to formalize the U.S.’s withdrawal from the Organization for Economic Cooperation and Development (OECD) global tax deal, according to a report by Accounting Today.

This move follows President Donald Trump’s executive order declaring that the agreement, negotiated under the Biden administration, holds “no force or effect” in the U.S. The GOP’s efforts underscore a stark departure from the Biden administration’s approach, reflecting broader tensions over international tax policy and economic competitiveness.

The legislation, led by Rep. Jason Smith (R-MO), chair of the House Ways and Means Committee, seeks to counter extraterritorial taxes like the OECD’s Undertaxed Profits Rule. It proposes retaliatory tax increases of up to 20 percentage points on U.S.-bound income from countries imposing such taxes.

The measure aligns with Trump’s goal of protecting U.S. businesses and maintaining economic sovereignty, as outlined in his executive order

Proponents argue the bill safeguards American jobs and prevents revenue loss estimated at $120 billion under the OECD framework. Critics, however, warn of potential diplomatic fallout and emphasize the role of global cooperation in combating tax avoidance.