Digital Tax Talks May Result in Trade War Even If Democrats Win

Digital Tax Talks May Result in Trade War Even If Democrats Win

February 27, 2020, Bloomberg

Samuel Maruca spoke with Bloomberg about the possibility of a digital tax on tech companies doing business internationally. The U.S. and 130 other countries are currently negotiating at the Organization for Economic Co-operation and Development about a new international tax system that would redefine which countries can tax which corporate profits. There’s skepticism, however, that Congress would actually be able to pass the legislation required to implement any deal reached at the OECD. Lawmakers have been publicly supportive of participating in the negotiations, but they might not ultimately like the outcome, says Mr. Maruca. He adds, “The U.S. is paying lip service to the process. Treasury is convinced that they’re not going to be able to get it through Congress. When push comes to shove there’s likely to be a lot of gnashing of teeth.”