In the United States, Treasury Secretary Janet Yellen removes the crucial precondition for the taxation of multinational corporations

In the United States, Treasury Secretary Janet Yellen removes the crucial precondition for the taxation of multinational corporations

At the G20 meeting on Friday, February 26, US Treasury Secretary Janet Yellen raised an American objection, allowing the Organization for Economic Cooperation and Development (OECD) to resume discussions on taxation of digital giants and multinational corporations.

By the end of 2019, negotiations were suspended, When Steve Muchin, Donald Trump’s Treasury Secretary, demanded that American companies be able to choose not to participate in this global tax system. Much’s official official intent was to overcome congressional reluctance in the United States – he must approve any changes to U.S. taxes. As the number of companies subject to this potential tax increases, so does the likelihood of their lobbying being approved.

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Negotiations began in 2013 when Europeans, especially in France, demanded a share of the tax revenue of the digital giants. Wealth is created in the United States, which prevents the role of the pie in Europe, the consumer of digital services. At the time, Democrat Barack Obama was closely associated with and financing the Silicon Valley giants.

Things began to move under Trump, and the file was handed over to the OECD in 2018. American elected officials, Democrats and Republicans alike have three wishes: a comprehensive agreement with the OECD, As in the fight against tax bases ; There are no unilateral measures as Francis is considered a protectionist; Finally, the unrestricted tax on digital players.

Enter the famous GAFA pay

At the time, Europeans starting from France wanted to charge the popular GAFA, Google, Apple, Facebook, and Amazon, but they had to accept the American demand for a broader tax: it would also affect businesses that sell products directly to the consumer, such as the French Whittenhouse and the German Mercedes (often American). This is a proposal put forward by the OECD by the end of 2019, when everything will end on January 5, when the Trump administration demands a waiver.

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The case is pending, and Washington decides in July 2020 to impose sanctions on France – Paris decides to levy its GAFA tax – but ultimately decides not to impose them in early January 2021.

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