Congressman Estes Releases Statement on International Tax Side-by-Side Agreement
Washington,
January 5, 2026
WASHINGTON - Congressman Ron Estes (R-Kansas), a member of the House Ways and Means Committee, released the following statement following the international tax side-by-side agreement that was made: “I cannot overstate the importance of this development for protecting U.S. tax sovereignty, American workers, and U.S. businesses competing globally. Under this side-by-side agreement, U.S. companies continue to be governed by U.S. tax law, while OECD Pillar Two rules are adjusted to ensure they do not unfairly apply to U.S.-parented companies. From the outset, the objective has been clear – to prevent double taxation and discriminatory treatment of U.S. firms. I’m grateful to the U.S. Department of the Treasury and its negotiating team for engaging constructively with G7 and OECD partners and for advancing a framework that respects U.S. tax law while allowing for international engagement. I also thank Ways and Means Committee Chairman Jason Smith for setting clear congressional expectations and for his leadership in ensuring that any agreement protects U.S. competitiveness and Congress’ taxing authority. Additionally, thank you to Senate Finance Committee Chairman Mike Crapo for reinforcing congressional oversight, insisting on fairness for U.S. taxpayers, and coordinating with Treasury and international partners to achieve this outcome. This agreement reflects clear and meaningful progress. As always, however, we must trust but verify. Congress can welcome this development while maintaining strong and vigilant oversight. Verification is essential to ensure that other countries fully implement their commitments through real-world compliance, not just written assurances. I remain committed to robust congressional oversight of the agreement’s implementation, including close monitoring to ensure that U.S. companies are protected from the Undertaxed Profits Rule (UTPR) and similar mechanisms. This side-by-side agreement represents a step in the right direction for U.S. tax policy. I will continue working to ensure it delivers on its promises and keeps American workers and businesses first.” ### |