Wichita Standard

Rep. Ron Estes of Kansas, supported by all Republican members of the Ways and Means Committee, has reintroduced the Unfair Tax Prevention Act. The legislation aims to discourage foreign countries from targeting U.S. jobs and tax revenues through the OECD's Pillar 2 Under Taxed Profit Rule (UTPR) surtax. The bill proposes a reciprocal tax measure on any country that imposes a UTPR surtax on American workers and businesses.

"When it comes to international taxes, the United States should put American businesses and the U.S. Treasury first—a departure from the Biden administration's policies of putting America last," Rep. Estes stated. He criticized the OECD's Under Taxed Profit Rule as a detrimental surtax that disproportionately affects U.S. companies and the country's economic competitiveness. Rep. Estes emphasized that Ways and Means Republicans support former President Trump in defending the U.S. tax base against unfair foreign taxes.

The Unfair Tax Prevention Act targets foreign-controlled entities connected to jurisdictions with extraterritorial taxes affecting U.S. businesses. It proposes strengthening anti-avoidance rules by eliminating certain tax thresholds for these entities and altering base erosion tax benefits. The legislation also calls for accelerating BEAT rate increases and tax credit changes for entities involved in these tax regimes.

Rep. Estes has been active in opposing the OECD's global tax scheme. He recently responded to reports that the Treasury Department sent a memo to the White House following President Trump's January 20 executive action on the matter. In the same month, Estes supported President Trump's rejection of the OECD tax deal and introduced the Defending American Jobs and Investment Act with Ways and Means Chairman Jason Smith of Missouri. Throughout his campaign, Rep. Estes has participated in various legislative and diplomatic efforts to protect American interests from what he views as unfair international tax policies.