Republican leaders blast Treasury’s decision to unilaterally terminate longstanding bilateral tax treaty
Washington, D.C.--U.S. Senator Mike Crapo (R-Idaho), Ranking Member of the Senate Finance Committee, Congressman Kevin Brady (R-Texas), U.S. House Ways and Means Republican Leader, and U.S. Senator Jim Risch (R-Idaho), Ranking Member of the Senate Foreign Relations Committee, issued the following statement regarding the U.S. Treasury Department’s announcement that it intends to withdraw from the U.S.-Hungary tax treaty in an attempt to compel Hungary to implement the global minimum tax deal being pursued by the Biden Administration. The Senate Finance Committee and House Ways and Means Committee have jurisdiction over tax matters, and the Senate Foreign Relations Committee has jurisdiction over treaties.
“Treasury’s latest tactic to force implementation of the OECD agreement is to withdraw from a longstanding bilateral tax treaty approved by Congress. This is a transparent attempt to bully Hungary into hasty action on a global minimum tax and interfere in an internal European Union policy-making process. The move stands in stark contrast to the Biden Administration’s rhetoric about improving multilateral tax cooperation. We are very concerned that Treasury’s go-it-alone approach to the global tax negotiations will lead to more uncertainty, more disputes among countries, and fewer jobs and opportunities for Americans.
“To achieve a sustainable result at the OECD, Treasury must abandon its unilateral approach and engage in bipartisan consultation with Congress and the interagency that includes protecting our own jobs and economy.”