Press Releases

Rep. Ron Estes (R-Kansas) released the following statement after Treasury Secretary Scott Bessent announced that the G7 has agreed to reverse the pursuit of discriminatory taxes that largely targeted U.S. innovators and would have drained $122 billion from the U.S. Treasury over 10 years. Rep. Estes' legislation – the Unfair Tax Prevention Act – was the basis for Section 899 in House Republicans' budget reconciliation bill, which ultimately led to countries reversing course.
 
"This announcement is a major win for American innovators, taxpayers and the Trump administration," said Rep. Estes. "The Biden administration surrendered American tax sovereignty in a deal with the OECD that would have allowed foreign countries to pilfer our treasury of $122 billion, but thanks to Republicans' work to include Section 899 in the One Big Beautiful Bill Act based on legislation I introduced, those discriminatory taxes will no longer be a threat. I agree with Treasury Secretary Bessent that Section 899 can now be removed from our legislation, as we no longer have to contend with the detrimental effects of the OECD's so-called Under Taxed Profit Rule. Republicans stand ready to take decisive action should foreign countries attempt to pursue discriminatory and extraterritorial taxes, such as Digital Services Taxes."

Background
Rep. Estes introduced legislation – the Unfair Tax Prevention Act – to discourage foreign countries from attacking U.S. jobs and tax revenues through the Organization for Economic Co-operation and Development (OECD)’s Pillar 2 so-called Under Taxed Profit Rule (UTPR) surtax. He wrote an op-ed for Bloomberg on Section 899 earlier this year.
 
In January, Rep. Estes praised President Trump’s executive actions rejecting the OECD tax deal. On that same day, he also joined Ways and Means Chairman Jason Smith (R-Missouri) in introducing the Defending American Jobs and Investment Act. Earlier that month he published an op-ed in London’s Telegraph outlining U.S. opposition to the OECD deal. He previously published an op-ed with MP Priti Patel on the OECD Pillar Two tax scheme, led a letter to Treasury demanding accountability and traveled with Ways and Means colleague to Germany and France to discuss Pillar Two with European leaders. He also introduced legislation to impose reciprocal taxes on countries that use the OECD deal to impose unfair taxes on U.S. business and raid the U.S. tax base in the last Congress. Earlier, he penned an op-ed in The Hill outlining the concerns with the OECD deal and published a Bloomberg op-ed with Rep. Randy Feenstra (R-Iowa) highlighting how the OECD tax deal would harm the United States.