If there is anyone who didn’t quite understand the quote: “there are trillions of dollars at stake”, in the context of the 2016 election, well, a letter today from the biggest EU economic nations will provide greater context.
Additionally, as you absorb the position behind their claims, never forget how much foreign governments spend in lobbying the U.S. congress for legislation adverse to the interests of U.S. workers.
Britain, France, Germany, Italy and Spain are claiming the U.S. congress has no right to reform the U.S. tax code because the reforms undercut their ability to hold an advantage over the U.S. in multinational trade deals.
This quote is particularly enlightening:
[…] The letter argues that proposed changes to the U.S. tax code could give American companies an advantage over foreign rivals.
The Globalist Position: ‘All your tax code are belong to us.’ Yes Alice, the election of President Trump, and the specific economic and trade policies within his platform, are an existential threat to decades long multinational schemes.
CNN MONEY – Germany, France, Britain, Spain and Italy have written to Treasury Sec. Steven Mnuchin, arguing that tax bills passed by the House and Senate run afoul of treaties and could distort international trade.
“It is important that the U.S. government’s rights over domestic tax policy be exercised in a way that adheres with international obligations to which it has signed-up,” the letter states. It was signed by the countries’ finance ministers.
The letter argues that proposed changes to the U.S. tax code could give American companies an advantage over foreign rivals.
The ministers objected specifically to a new 20% tax on payments from U.S.-based multinationals to their foreign affiliates, saying the measure in the House bill could “discriminate in a manner that would be at odds with international rules.”
They said the provision could also tax the profits of foreign businesses that do not have a permanent base in the U.S.
A second measure also drew objections. It would subject cross-border transfers within banks and finance companies to a 10% tax.
“These two … present [World Trade Organization] problems, said Rebecca Kysar, a professor at Fordham University. She said the measures could be considered to be discriminatory.
The finance ministers said they opposed another measure in the Senate bill that could benefit American companies by subsidizing their exports. (read more)
For several years CTH has pointed out how multinational corporations and multinational financial structures have usurped American Trade sovereignty. –Explained in Detail– Now, for the first time in decades, we have an American President looking out for the unique and specific interests of American manufacturers and American workers.
In September USTR Robert Lighthizer threw down the Trump gauntlet at the feet of the WTO and put them on notice that American economic and trade policy would be advanced with only the U.S. interests at the forefront.
With absolutely no change in intention, earlier today in Argentina, U.S. Trade Representative Robert Lighthizer again specifically called-out the World Trade Organization (WTO) for their role in facilitating the global schemes of an elite economic power group behind most of the world’s economic finances.
The responses from the nations who benefit most by manipulating trade to the detriment of the United States isn’t really surprising. However, it is a little stunning to see them so publicly, and openly, broadcast their anxiety over their inability to stop President Trump from reversing their advantage.