
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.