Republican members of the US House Ways and Means Committee have addressed a letter to President Donald Trump, outlining their concerns with Pillar 1 and Pillar 2 of the OECD’s proposed two-pillar solution.

The letter supports Trump’s recent executive action directing the Treasury Secretary, the Commerce Secretary, and the US Trade Representative to investigate if any foreign country imposes discriminatory or extraterritorial taxes on US citizens or corporations under Internal Revenue Code Section 891.

The letter states that members are ready to help by providing legislative tools, starting with Bill H.R. 591, the Defending American Jobs and Investment Act. This bill would require the Treasury Department to identify extraterritorial or discriminatory taxes imposed by foreign countries, including the Pillar 2 UTPR.

If such taxes are identified, U.S. tax rates on wealthy investors and corporations in those countries will increase by 5 percentage points annually for four years, then remain 20 percentage points higher while the extraterritorial or discriminatory taxes persist.

This follows Republicans on the US House Ways and Means Committee proposing new legislation on 22 January 2025 to tighten oversight of foreign tax policies. The bill requires the Treasury Department to identify extraterritorial and discriminatory taxes imposed by other countries, including the Pillar Two UTPR.

Earlier, the US withdrew from UN discussions on establishing a new Framework Convention for International Tax Cooperation. The decision was announced by Jonathan Shrier, Acting US Representative to the UN Economic and Social Council, during the Intergovernmental Negotiating Committee meeting on the UN Framework Convention on 3 February 2025.