I recently testified before the House Ways and Means Tax Subcommittee on the Organisation for Economic Cooperation and Development’s (OECD) Two Pillar proposal to increase corporate tax rates on multinational businesses.

You can read my full written testimony here and watch my opening statement here.

In my remarks, I explain how the OECD has lost its way in advocating for higher and more complicated taxes and detail the economic costs of its proposals. I conclude with thoughts on how U.S. policy should respond.

Two topics that came up in the hearing deserve additional attention. It was regularly asserted by Democrats and implied by some Republicans that the only path forward is continued engagement in the OECD process so that U.S. interests are fully represented. This strategy makes two poor assumptions. First, if the OECD’s inclusive framework successfully redistributes taxing rights, it will likely embolden future destabilizing unilateral actions. Second, the underlying motivation of the project—to increase global taxes—is at odds with U.S. interests and pro‐​growth policy.