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Europe doesn't like Trump administration's tax plans

Europe's five biggest economies have warned the Trump administration that its tax plan may violate international trad...

Posted: Dec 11, 2017 6:13 PM
Updated: Dec 11, 2017 6:13 PM

Europe's five biggest economies have warned the Trump administration that its tax plan may violate international trade rules.

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.

Kysar said the more income a U.S. company makes from exports, the greater the share of its income will be taxed at 12.5% instead of the general corporate rate of 20%.

Related: 4 red flags in the GOP tax bills

The letter comes at a crucial stage in the legislative process.

The House and Senate have passed competing versions of the tax bill. Their task now is to reconcile major differences between the two measures.

Congressional Republicans are hoping to get the final agreement to President Trump before Christmas.

Trump is expected to deliver remarks on tax reform at the Treasury Department on Wednesday.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 147382

Reported Deaths: 3763
CountyCasesDeaths
DeSoto973199
Hinds9668197
Harrison6898109
Jackson6178119
Rankin5319100
Lee487695
Madison4666106
Forrest371386
Jones346788
Lauderdale3355144
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Panola215849
Marshall209650
Leflore201490
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Lincoln186865
Warren172657
Tate165451
Union163925
Pike160658
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Scott150729
Coahoma148743
Itawamba148234
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Alcorn146327
Simpson145153
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Leake131943
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Clarke88853
Clay87127
Jasper81222
Walthall75328
Stone73114
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Montgomery72125
Carroll70614
Lawrence70314
Yalobusha70027
Noxubee69717
Smith69616
Perry65426
Tunica59619
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Claiborne57616
Jefferson Davis55017
Humphreys52918
Amite51814
Benton48717
Quitman4816
Webster42114
Kemper41918
Wilkinson38722
Jefferson34211
Franklin3265
Choctaw3117
Sharkey30717
Issaquena1124
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Alabama Coronavirus Cases

Cases: 239318

Reported Deaths: 3532
CountyCasesDeaths
Jefferson31391491
Mobile19562361
Tuscaloosa12813154
Madison12741146
Montgomery12198235
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Baldwin847398
Lee764466
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Tallapoosa173391
Pike157514
Clarke156319
Marion136535
Winston129923
Lawrence124836
Geneva12028
Pickens119418
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Barbour117010
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Butler114441
Randolph100921
Cherokee100824
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Clay90223
Washington90219
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Henry8496
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Monroe78111
Cleburne75714
Macon72321
Crenshaw70730
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Sumter57122
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Greene41418
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