According to the website of the House Committee on Ways and Means, on February 10, 2023 its Chairman Jason Smith sent a letter to OECD Secretary-General Mathias Cormann. In its letter the Chairman used harsh, if not aggressive words, towards President Biden and the OECD. For me the question that is to be answered is how these words and the letter have to be valued? Is the letter meant as a pure political statement meant for the US electorate, or is there more behind it? And obviously I am curious to find out what the reaction of the OECD to the letter will be.
A few quotes:
"If finalized, the Organization for Economic Co-operation and Development (OECD) global tax deal would result in fewer jobs and less prosperity for millions of American families. The technocrats negotiating this backroom deal in Paris have sought to attack the United States, and delegates from the Biden Administration have not stopped them."
“The House Republican Majority rejects those failures by Biden Administration negotiators. We will hold the Biden Administration accountable and restore Americans’ confidence in their government’s ability to protect American interests on the world stage.”
"The United States provides 20 percent of the OECD's annual budget-nearly $80 million per year and twice as much as any other country. China provides no funding to the OECD. Yet China stands to gain market share and jobs, while Americans are expected to pay the tab for the OECD global tax deal. It is unclear why American taxpayers should continue funding a project that manifestly harms their own interests in favor of a competitor.
"The OECD should reject all proposals that would allow other countries to attack American jobs and tax revenues."
The full text of the letter can be found here on the website of the US House Ways and Means Committee.
NB: The Committee on Ways and Means is the oldest committee of the United States Congress, and is the chief tax-writing committee in the House of Representatives.
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