Shenango Valley News

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, raised concerns about the Biden Administration's negotiation of tax deals without the involvement of Congress. During a hearing, Rep. Kelly questioned U.S. Treasury Secretary Janet Yellen on the administration's discussions with the OECD regarding tax frameworks known as "Pillar 1" and "Pillar 2."

Rep. Kelly criticized the administration for excluding Congress from the negotiations, stating, "The Biden Treasury Department has completely bypassed Congress and worked directly with OECD and foreign governments to craft these proposals." He emphasized the impact of these deals on U.S. economic security, particularly amid global instability, and highlighted the disproportionate tax burden that American companies could face.

The discussions surrounding the OECD's tax proposals have raised concerns about potential revenue losses for the United States. Rep. Kelly pointed out that if Pillar 1 had been in place in 2021, the U.S. would have lost $1.4 billion in revenue. Additionally, it was revealed in June 2023 that the United States could lose over $120 billion in tax revenues over 10 years under OECD's global minimum tax, known as Pillar 2.

Furthermore, Rep. Kelly highlighted the impact of President Biden's proposed tax changes, which include letting Trump-era tax cuts expire and raising corporate tax rates. These changes could result in the largest tax hike in history, totaling $7 trillion.

The concerns raised by Rep. Kelly underscore the ongoing debate over the Biden Administration's approach to international tax negotiations and the potential implications for U.S. tax policy and economic stability.