Kelly Statement on Treasury Agreement to Exempt U.S.-Headquartered Companies from Biden Global Tax Plan

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, released the following statement after the U.S. Treasury Department announced Monday that U.S.-headquartered multinational companies will be exempt from the OECD Pillar Two global minimum tax framework.

Previously, the Biden administration negotiated the Pillar Two framework without consultation of Congress. 

"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," said Rep. Kelly. "The Biden administration went around Congress and sold out American-based companies. I want to thank the Trump administration for working hand-in-hand with the Republican Congress in charting an America First path forward, which will allow American job creators to prosper at home and compete on a level playing field abroad."

The agreement also protects the value of the U.S. R&D credit and promises to reduce onerous compliance burdens, fulfilling the shared goal of U.S. leadership in innovation and technological advancement in the international tax and global competitiveness landscape. 

BACKGROUND

Rep. Kelly has previously led efforts in Congress to oppose the Organization for Economic Co-operation and Development’s (OECD) global minimum tax, known as Pillar 2, what Rep. Kelly called a poorly negotiated by the Biden Administration. During a 2023 hearing, Kelly highlighted how the United States stands to lose over $120 billion in tax revenues under Pillar 2.

"The original idea of engaging in negotiations at the OECD was this: other countries could join the U.S. with their own global minimum taxes and we could stop the proliferation of (Digital Services Taxes). Unfortunately, that’s not what happened at all," Rep. Kelly said in prepared remarks.

You can watch Rep. Kelly's opening statement and full committee hearing here and learn more here.

In October 2025, Kelly and Ways and Means Committee Republican leaders slammed a French proposal to impose higher discriminatory Digital Services Tax on U.S. innovators.