Wichita Standard

Rep. Ron Estes of Kansas has expressed approval following an announcement by Treasury Secretary Scott Bessent that the G7 countries have decided to halt efforts to impose taxes targeting U.S. innovators. These taxes were projected to cost the U.S. Treasury $122 billion over a decade. The decision aligns with Rep. Estes' Unfair Tax Prevention Act, which influenced Section 899 in the House Republicans' budget reconciliation bill and contributed to this reversal.

"This announcement is a major win for American innovators, taxpayers and the Trump administration," stated Rep. Estes. He criticized the Biden administration's previous agreement with the OECD, claiming it would have compromised American tax sovereignty by allowing foreign nations to draw substantial funds from the U.S. Treasury. He acknowledged that Section 899 could now be removed from legislation as the threat of these discriminatory taxes has been mitigated.

Rep. Estes emphasized Republican readiness to act if foreign countries attempt similar tax strategies in the future, including Digital Services Taxes.

Background information highlights Rep. Estes' legislative initiatives aimed at countering international tax measures perceived as detrimental to U.S. economic interests, particularly those associated with the OECD's Under Taxed Profit Rule (UTPR). His efforts included introducing various bills and publishing op-eds criticizing these international tax frameworks.

Earlier this year, Rep. Estes supported President Trump's executive actions against an OECD tax deal and co-introduced legislation with Ways and Means Chairman Jason Smith opposing such agreements.