Marsha Blackburn Questions Treasury Nominee on Small Business Audits and China Trade

Small Business Audits and Treasury's Role

• 🎯 Senator Blackburn raised concerns about the targeting of small businesses for audits during the Biden administration, citing numerous complaints.
• 💡 Brian Morrissey, Jr., nominee for General Counsel at the Treasury Department, stated that any IRS or Treasury enforcement actions must be based on impartiality, facts, and evidence.
• ✅ He committed to advising the Treasury and IRS to use neutral and objective criteria in their enforcement and rulemaking processes, ensuring a cost-benefit rationale.

Pillar Two and International Tax Policy

• 📊 Blackburn highlighted concerns about Pillar Two, noting that US companies are responsible for nearly 40% of payments while China pays only 7%.
• 🇺🇸 Morrissey emphasized the importance of protecting US interests in international tax negotiations, respecting US sovereignty and Congress's role in tax policy.
• 🤝 He pledged to proactively use the US's position in international bodies like the OECD to stand up for American interests.

Trade Relations with China and the WTO

• 🇨🇳 Senator Blackburn questioned how to better utilize the WTO to address China's alleged violations, including industrial subsidies, intellectual property theft, and forced labor.
• ⚖️ Morrissey suggested focusing on ensuring China abides by its notification obligations at the WTO and stops taking advantage of special and differential treatment.
• 🌍 He also proposed working closely with like-minded WTO members to address these trade violations.