Efforts to install a coordinated Global tax The rule for technical giants and ultra-to-ride persons is unpublished as US President Donald Tusrap pulls back Help And threatens new tariffs. The move has re -exposed the transatlantic tensions and stopped uncertainty in the years of talks. Tax Exploitation and closing flaws by multinational companies.
Technical tax deadlock
On 21 February, Trump issued a formal memo warning that his administration would retaliate against any country imposing taxes or fines on American tech firms, which are “discriminatory, inequal” or intended to transfer revenue to local companies. He especially threatened tariffs and other business measures to protect American firms.
This echoes a dispute from its first term, when Trump threatened to impose tariffs on French wine and cheese, as France implemented a digital service tax in 2019, targeting American firms. Since then, at least seven more countries have adopted similar taxes including Italy, Spain, Austria and India.
France collected € 780 million from tax in 2023. The European Union is now considering a block-wide digital tax if the conversation with the US fails, especially in the light of Trump’s proposal to put 20 percent tariffs on European Union goods.
Britain, which currently increases £ 800 million per annum from its digital levy, appears open to modify the policy. UK Trade Secretary Jonathan Reynolds recently stated that tax is not “set in stone” and may be subject to conversation as London wants a business agreement with Washington.
Global Tax Deal Stall
In 2021, about 140 countries arrived on an agreement to improve international corporate taxation under OECD. There are two columns in the plan. The first goal is of tax profit where they are produced, especially digital firms. The second 15 percent of the global minimum corporate tax rate determines the rate.
So far, around 60 countries have adopted minimum taxes including Brazil, Japan, Canada, Switzerland and all European Union members. However, the first column seen as the origin of the effort to move the profit and prevent base erosion, has not made no significant progress. Daniel Bann of the US-based Tax Foundation said that talks on implementation have also stopped under the President Joe Biden.
Franco-American economist Gabriel Zukman warned that without enforcement, compromise could be a fall. “If the European Union and other countries accept defeat and allow American multinational companies to exempt themselves, it would unfortunately the magic of the end of this very important agreement,” he told the AFP.
Billionaire class hit the hit roadblock
A separate push is also losing speed to impose money tax on billionaires. Brazil proposed a two -percent minimum annual tax on individuals of more than $ 1 billion in property, during the G20 presidential post. If applied globally, this policy was expected to generate $ 250 billion per year.
The United States has not supported the proposal. Biden remained silent on this, and Trump -A billionaire -has deducted tax in his political career. With Trump again at the White House, supervisors are much less likely to support American.
According to Forbes, America is home to about one-third of billionaires of billionaires of the world-which is more combined than China, India and Germany.
At the recent tax conference in Paris, economist Thomas Pikati said that countries should work independently if multilateral coordination fails. He said, “We need individual countries, as soon as possible,” he said. “History suggests that once you have some countries adopt a reform, it becomes a new standard.”
