U.S. Reps. Mike Kelly (R-PA), Vern Buchanan (R-FL), and Ron Estes (R-KS) applauded recent action by the U.S. Treasury Department to exempt U.S.-headquartered multinational companies from the OECD’s Pillar Two global minimum tax framework, which the lawmakers said will protect American jobs, investment, and tax sovereignty.
The Treasury Department said Monday that the United States finalized a “side-by-side” agreement with more than 145 countries participating in the OECD/G20 Inclusive Framework, ensuring that U.S.-based companies will remain subject only to U.S. global minimum taxes while being exempt from Pillar Two.
The deal builds on an initial agreement reached in summer 2025, according to a statement U.S. Treasury Secretary Scott Bessent released on Jan. 5.
“This side-by-side agreement recognizes the tax sovereignty of the United States over the worldwide operations of U.S companies and the tax sovereignty of other countries over business activity within their own borders,” Bessent said.
Further, said the secretary, the agreement protects the value of the U.S. R&D credit and other congressionally approved incentives for investment and job creation in the United States, fulfilling the shared goal of U.S. leadership in innovation and technological advancement.
Republican lawmakers welcomed the announcement, saying it responds to long-standing concerns that global tax rules could discourage investment in the U.S.
Rep. Kelly, chairman of the House Ways & Means Subcommittee on Tax, contrasted the agreement with how the Pillar Two framework was initially negotiated under the Biden administration.
“Thanks to the leadership of the Trump administration, today’s agreement protects American businesses and workers from burdensome global bureaucratic overreach and recognizes the tax sovereignty of the United States,” Rep. Kelly said on Monday. “The Biden administration went around Congress and sold out American-based companies.”
Likewise, Rep. Buchanan, vice chairman of the House Ways and Means Committee, called the Biden administration’s agreement to a global minimum corporate tax rate “a disastrous mistake” that essentially surrendered U.S. tax sovereignty to Europe.
“It would have crippled American businesses’ ability to compete and create new jobs,” said Rep. Buchanan in a Jan. 5 statement. “President Trump and Secretary Bessent have secured a strong deal that protects U.S. companies from unfair foreign taxes and defends American competitiveness. Congressional Republicans will continue to work to protect American companies and workers from foreign interference.”
Rep. Estes also agreed, pointing out that the side-by-side agreement will permit U.S. companies to 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. companies.
“From the outset, the objective has been clear — to prevent double taxation and discriminatory treatment of U.S. firms,” said Rep. Estes. “This agreement reflects clear and meaningful progress.”
Rep. Estes did caution that while Congress should welcome the development, it also must maintain strong and vigilant oversight.
“As always… we must trust but verify,” he said. “Verification is essential to ensure that other countries fully implement their commitments through real-world compliance, not just written assurances.”
Secretary Bessent added that the Treasury Department will continue engaging with foreign countries to ensure full implementation of the agreement, build greater international tax stability, and move toward a constructive dialogue on the taxation of the digital economy.