Rep. Ron Estes (R-KS), has introduced the Unfair Tax Prevention Act, aimed to deter foreign countries from implementing the Organization for Economic Co-operation and Development’s (OECD) Pillar 2 Under Taxed Profit Rule (UTPR) surtax, a measure some argue is a threat to U.S. jobs and tax revenues.
The OECD announced a delay in the implementation of the UTPR earlier this week, amidst ongoing negotiations with the Biden Administration. The Unfair Tax Prevention Act provides a reciprocal tax measure for any country implementing a UTPR surtax on American workers and businesses, a tax that will remain in effect as long as the foreign country's surtax does.
Rep. Estes criticized the recent agreement between the Biden Administration and the OECD, arguing it negatively impacts U.S. economic competitiveness. He added that the new legislation, which builds on the earlier-introduced Defending American Jobs and Investment Act, seeks to safeguard the U.S. tax base from unjust extraterritorial taxes by foreign nations and penalize any countries that choose to implement them.
The Unfair Tax Prevention Act is a reciprocal tax measure for any country that decides to target Americans under the OECD agreement:
Read the bill text here.
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