House Republicans Move to Defund OECD Over Global Tax Dispute
GOP lawmakers target U.S. contributions to Paris-based body they say favors European interests at the expense of American and Asian economies
Republicans in the U.S. House of Representatives have introduced legislation to strip funding from the Organisation for Economic Co-operation and Development, the Paris-based economic forum.
The bill, passed by the House appropriations committee, would halt U.S. contributions to the OECD, which currently account for approximately eighteen percent of the organization’s operating budget.
The initiative stems from Republican objections to the OECD’s role in designing global tax frameworks, including proposals for a global minimum corporate tax and digital services tax rules.
GOP lawmakers argue that the OECD is structurally designed to benefit European economies by steering more global tax revenue toward Europe.
They contend that the organization’s tax policies disproportionately target U.S. and Asian companies, and undermine national fiscal sovereignty by pressuring countries to align with rules that serve European economic interests.
Last month, a G7 agreement at Washington’s request secured exemptions for American firms from key elements of the OECD-backed global tax plan.
In exchange, the administration withdrew a retaliatory tax measure included in President Trump’s fiscal legislation.
The bill now advances to the full House and Senate.
Because it involves reallocating international funding, it would require support from at least seven Democratic senators to pass procedural hurdles in the upper chamber.
The proposal is part of a broader push by the administration to reevaluate U.S. participation in multilateral institutions viewed as misaligned with national priorities.
Since returning to office, President Trump has withdrawn the United States from several international bodies, including the World Health Organization, the UN Human Rights Council, UNESCO, and the Paris climate agreement.
A report from the Secretary of State, due in early August, will review U.S. involvement in a range of global organizations.
House Republicans backing the measure have criticized the OECD’s advocacy of tax harmonization and digital levies, calling them incompatible with U.S. economic and legislative interests.
Despite Republican majorities in both chambers, securing cross-party support in the Senate remains a key obstacle for the bill’s passage.
The bill, passed by the House appropriations committee, would halt U.S. contributions to the OECD, which currently account for approximately eighteen percent of the organization’s operating budget.
The initiative stems from Republican objections to the OECD’s role in designing global tax frameworks, including proposals for a global minimum corporate tax and digital services tax rules.
GOP lawmakers argue that the OECD is structurally designed to benefit European economies by steering more global tax revenue toward Europe.
They contend that the organization’s tax policies disproportionately target U.S. and Asian companies, and undermine national fiscal sovereignty by pressuring countries to align with rules that serve European economic interests.
Last month, a G7 agreement at Washington’s request secured exemptions for American firms from key elements of the OECD-backed global tax plan.
In exchange, the administration withdrew a retaliatory tax measure included in President Trump’s fiscal legislation.
The bill now advances to the full House and Senate.
Because it involves reallocating international funding, it would require support from at least seven Democratic senators to pass procedural hurdles in the upper chamber.
The proposal is part of a broader push by the administration to reevaluate U.S. participation in multilateral institutions viewed as misaligned with national priorities.
Since returning to office, President Trump has withdrawn the United States from several international bodies, including the World Health Organization, the UN Human Rights Council, UNESCO, and the Paris climate agreement.
A report from the Secretary of State, due in early August, will review U.S. involvement in a range of global organizations.
House Republicans backing the measure have criticized the OECD’s advocacy of tax harmonization and digital levies, calling them incompatible with U.S. economic and legislative interests.
Despite Republican majorities in both chambers, securing cross-party support in the Senate remains a key obstacle for the bill’s passage.