US Unhappy With Digital Tax Plans
The United States is getting increasingly twitchy about European digital taxes, and especially the French measures. And retribution could be swift.
Members of the US Congress from both sides of the aisle have been queuing up to publicly condemn foreign digital taxes, which they say are a deliberate fiscal raid on a group of largely US-based companies. But their intervention on this subject is not altogether surprising, given that such statements are aimed in the direction of lawmakers’ constituents as much as the White House and foreign governments.
More worryingly for France and the EU though, is that the Administration itself is talking tough too. Recently, a senior Treasury official revealed to reporters that the department is actively exploring the deployment of countermeasures to the French and other digital measures under World Trade Organisation rules, and even the public face of the Treasury, Secretary Steven Mnuchin, has not minced his words on the matter.
Let’s face it, this US administration has hardly been slow to respond to economic threats from other nations, perceived or real, with tariffs and other sanctions. So, for the French Government, the digital tax could open a can of worms it might come to wish had remained firmly shut. Oh well, Emmanuel, you can’t please ‘em all. Trouble is, recent French presidents have had a remarkable talent for not only pleasing nobody, but also making most of them rather angry.
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