The U.S. Constitution specifies that Congress, not unelected bureaucrats or foreign adversaries, is in charge of crafting our nation’s tax laws. As the American people awaken to the geopolitical and economic threats posed by the Chinese Communist Party, that protection makes more strategic sense than ever. Yet Treasury Secretary Janet Yellen is turning this bedrock principle on its head by writing a global tax code with the help of European bureaucrats that would redound to the benefit of Beijing. If enacted, the new rules would violate international law and harm U.S. security.
So far 142 countries have orally agreed to a global tax code known as Pillar Two. Under the framework developed by the Organization for Economic Coordination and Development, the new code would impose a 15% minimum book tax on large multinational companies. Although Congress has thus far resisted Ms. Yellen’s request to enact Pillar Two, the Treasury secretary is now presenting an ultimatum: Impose the tax increases, or watch foreign countries seize American revenue.
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