22. Department of the Treasury · Notable
Reject the global minimum corporate tax and international tax harmonization
Printed page 698 22. Department of the Treasury
“This attempt to “harmonize” global tax rates is an attempt to create a global tax cartel to quash tax competition and to increase the tax burden globally. The U.S. should not outsource its tax policy to international organizations.”
What has happened
- Partially done
Treasury announced a side-by-side agreement with the more than 145 members of the OECD/G20 Inclusive Framework under which U.S.-headquartered companies remain subject only to U.S. global minimum taxes and are exempted from Pillar Two. The global minimum tax is rejected as applied to U.S. companies, which is the substance of this ask; but the United States negotiated the exemption inside the OECD framework and Treasury says it "will continue engaging with foreign countries to ensure full implementation of the agreement … and move toward a constructive dialogue on the taxation of the digital economy", so the wider ask not to work through international organizations on tax policy is not delivered.
- Attempted
The Presidential Memorandum of January 20, 2025 on the OECD Global Tax Deal directed the Secretary of the Treasury and the U.S. Permanent Representative to the OECD to notify the organization that commitments made by the prior administration "have no force or effect within the United States absent an act by the Congress adopting the relevant provisions of the Global Tax Deal", and directed Treasury and USTR to prepare options for protective measures against extraterritorial and discriminatory foreign taxes within 60 days. A declaration of position with a report attached, and nothing yet changed abroad.
Research log
What was searched, and what didn’t count as evidence
Research notes
Leveled partial rather than done: the Quote objects both to the global minimum corporate tax and to “harmoniz[ing]” tax policy through international organizations. The first is delivered for U.S.-parented groups; the second is not, because the delivery mechanism was an agreement negotiated within the OECD Inclusive Framework, which the United States has not left.
Chapter 22 #1943 (withdraw from the OECD and end U.S. funding for it) carries the same two documents and stays not started — membership and funding are untouched. The distinction is deliberate: this item is about the tax deal, #1943 is about the organization.
- Action
- withdraw
- Object
- global minimum corporate tax
- ID
- 1942