In a statement, Treasury Department spokeswoman Monica Crowley said the U. S. „has suggested a pause“ in the talks as countries focus on fighting COVID-19 and reopening their economies.
European countries are slamming the Trump administration’s withdrawal from negotiations over a major tax on big tech companies.
French Finance Minister Bruno Le Maire, speaking on France Inter, called it a „provocation“ and said France will still implement the tax regardless of the U. S. change of heart.
Le Maire was referring to a letter in which U. S. Treasury Secretary Steven Mnuchin told the finance ministers of France, Spain, Italy and the United Kingdom that he was suspending talks on the tax.
„This letter is a provocation. It is a provocation against all the partners at the OECD (the Organization for Economic Co-operation and Development) when we were centimeters away from a deal on the taxation of digital giants,“ Le Maire said.
In a statement, Treasury Department spokeswoman Monica Crowley said the U. S. „has suggested a pause“ in the talks as countries focus on fighting COVID-19 and reopening their economies.
The countries have been discussing an international agreement on the way global taxes work. The tech tax is meant to prevent tax avoidance measures by multinationals, but the U. S. has said it unfairly singles out companies like Amazon and Google.
U. S. Trade Representative Robert Lighthizer has dismissed the OECD efforts so far, saying the countries involved were trying to harm American companies and telling a congressional committee Wednesday „that’s not something we’re ever going to be a part of.“
Some countries such as Spain and Britain have been working on their own digital taxes while they wait for a global one.
