Summary

Summary of Executive Order Regarding the OECD Global Tax Deal

Purpose

The memorandum addresses the implications of the OECD Global Tax Deal, which the current administration believes limits U.S. economic sovereignty and promotes foreign tax measures detrimental to American businesses.

Actions Taken

• Invalidation of Prior Commitments: The Secretary of the Treasury and the Permanent Representative to the OECD will inform the OECD that any commitments made by the previous administration regarding the Global Tax Deal are null unless Congress enacts relevant provisions.
• Investigation of Foreign Tax Compliance: The Secretary of the Treasury, in coordination with the U.S. Trade Representative, will examine if foreign nations are non-compliant with U.S. tax treaties or have discriminatory tax measures. Findings and options for protective measures will be presented to the President within 60 days.

Expected Impact

• Restoration of Economic Sovereignty: The memorandum seeks to clarify U.S. authority over its tax policies and eliminate potential foreign tax pressures on American companies.
• Focused Response on Discriminatory Practices: A systematic approach will be established to identify and address any foreign tax practices that unfairly affect American businesses.

General Provisions

• The memorandum does not restrict the authority of executive agencies or create enforceable rights against the U.S. government. It is to be executed in accordance with existing laws and budgetary constraints.