Quantcast
Connect with us

US urges countries to suspend digital taxes, supports OECD talks: Mnuchin

Published

on

US Treasury Secretary Steven Mnuchin is urging countries like France to suspend taxes on global computing giants such as Google and Amazon and wait for a negotiated agreement on international taxation, according to a letter released Wednesday.

As the United States is poised to impose tariffs of up to 100 percent on $2.4 billion in French products over that country’s digital services tax, Mnuchin said talks in the Organization for Economic Cooperation and Development are key to resolving the issue.

ADVERTISEMENT

“We believe that it is very important that these talks reach agreement in order to prevent the proliferation of unilateral measures, like digital services taxes, which threaten the longstanding multilateral consensus on international taxation,” Mnuchin said in a letter to OECD chief Jose Angel Gurria.

“We urge all countries to suspend digital services tax initiatives in order to allow the OECD to successfully reach a multilateral agreement,” he said in the letter, which was dated Tuesday.

US Trade Representative Robert Lighthizer on Monday released a report slamming France’s tax as discriminatory and designed to target American tech giants like Google, Apple, Facebook and Amazon.

He said Washington would proceed quickly with plans to impose tariffs on French products, including champagne, cosmetics, yogurt and Roquefort cheese.

The decision “sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on US companies,” Lighthizer said in a statement on Monday.

ADVERTISEMENT

– ‘Broad support’ –

The French tax imposes a three percent levy on the revenues earned by technology firms in France, which often come from online advertising and other digital services.

AFP/File / MANDEL NGAN US Treasury Secretary Steven Mnuchin, seen with President Donald Trump (R) and Apple CEO Tim Cook (2nd L), said countries should suspend unilateral taxes on tech giants

It targets revenue instead of profits, which are often reported by tech giants in low-tax jurisdictions like Ireland or Luxembourg in a practice that has enraged governments.

ADVERTISEMENT

Lighthizer’s office said it is considering widening the investigation to look into similar taxes in Austria, Italy and Turkey.

Mnuchin said there is “broad support” for providing greater certainty on taxation.

ADVERTISEMENT

“We look forward to working with the OECD along these lines, building on the work already done.”

A top EU official expressed concern this week that President Donald Trump’s administration was planning to pull out of the multilateral talks, so Mnuchin’s support for the talks come as a relief.

Cedric O, France’s secretary of state for the digital economy, also told AFP in Washington on Tuesday that France believed there was still time to stave off the threatened of tariffs.

ADVERTISEMENT

“The first and foremost objective that we have is to strike a deal at the OECD,” he said, insisting that the current row was “not the end of the story.”


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

WATCH: John Oliver exposes Trump’s lies about vote-by-mail — and the Fox News ‘cult’ claiming the election is already ‘rigged’

Published

on

"Last Week Tonight" host John Oliver's main story Sunday refuted President Donald Trump's latest crusade against vote-by-mail. Trump announced on Twitter that the more people who vote in an election, the more Republicans tend to lose. So, he wants fewer people to have access to the ballot in November, even if people are too scared to go out during the coronavirus crisis.

Oliver called out Missouri Gov. Mike Parson (R-MO), who outright told people not to vote if they were too afraid to vote in the local elections next week.

"Well, hold on there," Oliver interjected. "Voting is a right. It has to be easy to understand and accessible to anyone."

Continue Reading

Breaking Banner

John Oliver rips Fox News’ Tucker Carlson for urging ‘order’ from people of color — but never demanding it of police

Published

on

John Oliver opened his Sunday show, shredding Fox News host Tucker Carlson for uring "order" among protesters, but refusing to urge "order" to police and "wannabe police" who can't stop killing people.

It's a lot, Oliver explained. "How these protests are a response to a legacy of police misconduct, both in Minneapolis and the nation at large and how that misconduct is, itself, built on a legacy of white supremacy that prioritizes the comfort of white Americans over the safety of people of color."

While some of it is complicated, Oliver conceded, most of it is "all too clear."

Continue Reading
 

Breaking Banner

Cars set on fire blocks from White House as DC protests turn violent

Published

on

The Washington, D.C. protests turned violent as the city approached the 11 p.m. curfew the mayor instituted Sunday afternoon.

The policy of D.C. police is that when they are attacked, they advance forward. So, when fireworks were fired, the line of officers began pushing the protesters back further from the White House. Behind the line of police officers also stand a line of National Guard troops that President Donald Trump has demanded stand watch in the city.

Lights that normally shine on the White House have also been turned off, reporters revealed.

https://twitter.com/markknoller/status/1267291138655956992

Continue Reading
 
 
You need honest news coverage. Help us deliver it. Join Raw Story Investigates for $1. Go ad-free.
close-image