Congressional Republicans are not satisified with the European Commission’s explanation for its decision to require Apple to pay $14.5 billion in back taxes to Ireland.
European Commissioner for Competition Margrethe Vestager, the official responsible for the decision, met with top tax-writing lawmakers in Washington this week to discuss that and other cases in which Europe is investigating if U.S. companies got sweetheart deals from specific governments.
The Republicans said that they were not satisfied with Vestager’s answers, but they also indicated that they might not have any recourse for protecting U.S. companies, other than by passing tax reform.
After meeting with Vestager Tuesday, House Ways and Means Committee Chairman Kevin Brady said “the commission is pursuing a completely irresponsible and far-reaching tax policy agenda that will strain U.S.- EU relations.”
In a statement, the Texas congressman acknowledged that Republicans have “limited legislative options for stopping the commission from continuing down this misguided path,” but said that it would energize members to work toward tax reform. House Republicans have introduced a tax reform plan that would lower the corporate tax rate and eliminate the incentives for businesses to route earnings offshore, as Apple is thought to have done.
Sen. Orrin Hatch, Utah Republican and chairman of the Senate Finance Committee, made similar comments after meeting with Vestager Monday afternoon.
Saying that the European Commission had “run roughshod” over Apple, Hatch said the Danish Vestager had “failed to build an effective case for this highly politicized ruling rooted in an erroneous interpretation of law, underscoring the need for additional action in international courts.”
He also added that it highlighted the need for tax reform.
Vestager also met with Treasury Secretary Jack LewMonday. The Obama administration and top Democrats also have been highly critical of the European Commission’s decision.
