Thompson Opening Statement at Tax Subcommittee Hearing
(As prepared for delivery)
Thank you, Mr. Chairman.
Our economic recovery from the pandemic has not only broken our own records, it has put us far and above the world’s major economies. Despite naysayers and wish-casters betting against the American worker, we’ve been able to defy all odds. Thanks to President Biden and Congressional Democrats’ investments in workers and families, over 13 million jobs have been added.
Inflation has declined consecutively for the last 12 months, and we’ve had the strongest economic growth of all the world’s major economies.
And instead of building on this success, in the first Tax Subcommittee hearing of the 118th Congress, my colleagues are choosing to double down on their race to the bottom and protecting multi-national corporations. From examining how we can extend the Child Tax Credit, to looking at how our tax code treats victims of wildfires, there is much on the individual side for this Committee to discuss and I regret that my colleagues didn’t want to start there.
American workers and taxpayers have paid the price for a system that rewards large multinational corporations that do business in one country and park their profits in the country with the lowest tax rate they can find. Republicans’ desperate attempts to preserve this system is more of the same: sparing the largest, most profitable companies from paying their fair share while honest taxpayers are left with the bill.
The global minimum tax is designed to level the playing field and put an end to underhanded profit shifting. For one, it brings parity to our small businesses- those who don’t have the ability to move their profits offshore- who have already been paying their fair share. Second, it will encourage businesses to keep their income where there is real economic activity.
There is widespread agreement around the world that the wealthiest corporations have an obligation to pay their fair share, and they won’t wait for us to move forward in the process. More than 50 countries- large economies- are already implementing the global minimum tax.
This is not the time to wish away reality, and the longer my colleagues take a head-in-the-sand approach, the more damage will be done to taxpayers, our businesses, and our Treasury.
While we’ve led the other large economies around the world in our recovery, our economy does not exist in isolation, and coordination will strengthen our commerce ties around the world.
The truth is that abandoning these negotiations would be unambiguously worse for Americans and American businesses than continuing to negotiate and ensure we get the details right.
Doing so puts other countries in charge of our fate, and abandons American companies, workers, and ultimately, taxpayers.
Too much is at stake for our businesses and economy to let this train leave the station without American leadership and input.