Source: United States Senator for Pennsylvania Pat Toomey
Washington, D.C. – U.S. Senator Pat Toomey (R-Pa.) released the following statement commending the Hungarian government for its decision to veto a European effort to impose a 15 percent global minimum tax on employers. The veto will halt implementation of Pillar Two of the Organisation for Economic Cooperation and Development’s (OECD) International Agreement in the European Union and slow momentum on the Biden administration’s proposed tax hikes.
“As Hungary acknowledges, punishing workers and businesses with a global minimum tax would be a counterproductive step for economic growth around the globe. It would be a profound mistake for the United States to adopt this global tax increase, as it makes our workers and businesses less competitive. The only reason the Biden administration is pursuing this tax agreement is to justify corporate tax increases in the U.S., which will be necessary to partially cover the enormous costs of their reckless, inflation-fueling spending plans.
“The Biden administration describes competition among developed countries to get to a tax code that attracts investment and maximizes growth as a ‘race to the bottom’. We should be leading that race—not trying to prevent it.”