Britain to United States: We want a trade deal and a digital tax

 

FILE PHOTO: Britain's Business, Energy and Industrial Strategy Secretary Andrea Leadsom is seen outside 10 Downing Street London, Britain, January 21, 2020. REUTERS/Henry Nicholls

 

LONDON (Reuters) - Britain wants a trade deal with the United States but will impose a digital service tax on the revenue of companies such as Google, Facebook and Amazon, business minister Andrea Leadsom said on Thursday.

 

“The United States and the United Kingdom are committed to entering into a trade deal with each other and we have a very strong relationship that goes back centuries so some of the disagreements that we might have over particular issues don’t in any way damage the excellent and strong and deep relationship between the U.S. and the UK,” Leadsom told Talk Radio.

 

“There are always tough negotiations and tough talk but I think where the tech tax is concerned it’s absolutely vital that these huge multinationals who are making incredible amounts of income and profit should be taxed and what we want to do is to work internationally with the rest of the world to cover with a proper regime that ensures that they’re paying their fair share.”

 

Under the British plan, tech companies that generate at least 500 million pounds ($657 million) a year in global revenue will pay a levy of 2% of the money they make from UK users from April 2020.

 

-- © Copyright Reuters 2020-01-23

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10 minutes ago, snoop1130 said:

Under the British plan, tech companies that generate at least 500 million pounds ($657 million) a year in global revenue will pay a levy of 2% of the money they make from UK users from April 2020.

That sounds quite moderate taxation demand when starting the negotiations. Perhaps UK can increase it after some initial period?

The US treasury secretary, Steven Mnuchin, said the government’s proposed digital services tax discriminated against US multinationals and warned there would be retaliation – probably a tax on UK car exports to the US – if the 2% levy were imposed in April.

 

https://www.theguardian.com/business/2020/jan/22/uk-to-impose-tax-on-tech-giants-but-risks-us-tariffs-on-car-exports

17 minutes ago, TheDark said:

That sounds quite moderate taxation demand when starting the negotiations. Perhaps UK can increase it after some initial period?

Apple manage to pay about 1% in Ireland when the rate is supposed to be 12.5%.

 

Once the UK accountants get to work, 2% will be 0%

It is obvious that trade deals are not as easy as some believe here.
But in the end, the UK's stance corresponds to the EU.
The EU also plans to introduce a digital tax on the avoid tax,  - shift tax stations from the big US IT giants.

2 hours ago, snoop1130 said:

huge multinationals who are making incredible amounts of income and profit should be taxed

Of course they should be taxed. They have gotten away with it for so long. Although it would marginally affect (foreign) big business, it a sure fire Tory vote winner. 

Let the negotiations begin. 

2 hours ago, simple1 said:

The US treasury secretary, Steven Mnuchin, said the government’s proposed digital services tax discriminated against US multinationals and warned there would be retaliation – probably a tax on UK car exports to the US – if the 2% levy were imposed in April.

 

https://www.theguardian.com/business/2020/jan/22/uk-to-impose-tax-on-tech-giants-but-risks-us-tariffs-on-car-exports

Britain’s new sovereignty, UK tax laws dictated by Washington.

ha so the Brits may get some tax revenue from those companies, but the USA, the country from which those companies are exploiting huge tax loop hole in US corporate tax law won't get any tax revenue.

Does the USA don't  knows , that they need the U.K. more than the U.K. need the USA ….????.....(history is repeating ...) 

17 minutes ago, david555 said:

Does the USA don't  knows , that they need the U.K. more than the U.K. need the USA ….????.....(history is repeating ...) 

How exactly does that work?

 

A trade market of 60M, and a military which has been cut to the bone and barely functional.

 

What again does the US need the UK for?

3 minutes ago, GinBoy2 said:

How exactly does that work?

 

A trade market of 60M, and a military which has been cut to the bone and barely functional.

 

What again does the US need the UK for?

Access and influence to European markets?

7 minutes ago, GinBoy2 said:

How exactly does that work?

 

A trade market of 60M, and a military which has been cut to the bone and barely functional.

 

What again does the US need the UK for?

Just repeating what they thought about the E.U. needing them more ,....than U.K. needing the E.U. ….hence the negotiations , is their motto , you don't know them ????

Edited January 23, 20206 yr by david555

2 minutes ago, TheDark said:

Access and influence to European markets?

Aren't you about to leave the EU in weeks time?

 

I would suggest that access and influence evaporate next week!

4 minutes ago, david555 said:

Just repeating what they thought about the E.U. needing them more ,....than U.K. needing the E.U. ….hence the negotiations , is their motto , you don't know them ????

Now I understand

7 hours ago, david555 said:

Does the USA don't  knows , that they need the U.K. more than the U.K. need the USA ….????.....(history is repeating ...) 

Spoken like a true Brexiter/special relationship believer ???? I think France had a special relationship when they helped the US kick the Brits out too...would the Donald have seen that as an unfair asset/investment grab? ????

does nobody remember the days before entry into europe? what has britain gained from europe,before we traded worldwide and had some good deals. the americans,what have they given us,except a tremendous assistance in ww2,a debt i would have imagined should long have been repaid and bases removed from british soil. and yes i have had my own private brexit thank f---.

17 hours ago, snoop1130 said:

LONDON (Reuters) - Britain wants a trade deal with the United States but will impose a digital service tax on the revenue of companies such as Google, Facebook and Amazon, business minister Andrea Leadsom said on Thursday.

So London wants? Great way to start out by threatening to tax U.S. companies. I say, let them squirm for a while. The E.U. is still a major trading partner for the U.S.. 

No amount of noise from the rhubarb brigade can stop the clock from ticking ????

41 minutes ago, evadgib said:

No amount of noise from the rhubarb brigade can stop the clock from ticking ????

Nor can any prevent the consequences, in this case the US will dictate UK tax policy wrt US companies.

 

The US Pharma lobby will dictate the prices the UK will pay for medicines ( I’ll refer you to US insulin prices as a portent of what the UK will face).

 

And the US agricultural lobby will dictate the terms that will decimate British farming.

 

58 minutes ago, evadgib said:

No amount of noise from the rhubarb brigade can stop the clock from ticking ????

Neighter it stops WTO rules coming closer....????

1 hour ago, PhonThong said:

So London wants? Great way to start out by threatening to tax U.S. companies. I say, let them squirm for a while. The E.U. is still a major trading partner for the U.S.. 

So London "wants "...( once more..) "their cake and eat it"  which E.U. could give if only they would accept the terms for it...

So now they try it to play on ....the real mumber 1 from western world ....hilarious....????

Edited January 24, 20206 yr by david555

11 hours ago, GinBoy2 said:

How exactly does that work?

 

A trade market of 60M, and a military which has been cut to the bone and barely functional.

 

What again does the US need the UK for?

Uk invents the  most  things

3 hours ago, beavenlen said:

does nobody remember the days before entry into europe? what has britain gained from europe,before we traded worldwide and had some good deals. the americans,what have they given us,except a tremendous assistance in ww2,a debt i would have imagined should long have been repaid and bases removed from british soil. and yes i have had my own private brexit thank f---.

A 12.5X increase in GDP per capita.

They were the sick man of the EU when they joined: https://www.economist.com/buttonwoods-notebook/2017/07/19/britain-back-to-being-the-sick-man-of-europe

 

Will not fit anyones narrative here tho, i guess.

Not like the USA has much success against its own tech giants:

The IRS Decided to Get Tough Against Microsoft. Microsoft Got Tougher.

For years, the company has moved billions in profits to Puerto Rico to avoid taxes. When the IRS pushed it to pay, Microsoft protested that the agency wasn’t being nice. Then it aggressively fought back in court, lobbied Congress and changed the law.

https://www.propublica.org/article/the-irs-decided-to-get-tough-against-microsoft-microsoft-got-tougher

17 hours ago, Loiner said:

Of course they should be taxed. They have gotten away with it for so long. Although it would marginally affect (foreign) big business, it a sure fire Tory vote winner. 

Let the negotiations begin. 

....Tory vote winner.

You've gotta be kiddin' me!????

1 hour ago, Chomper Higgot said:

Nor can any prevent the consequences, in this case the US will dictate UK tax policy wrt US companies.

 

The US Pharma lobby will dictate the prices the UK will pay for medicines ( I’ll refer you to US insulin prices as a portent of what the UK will face).

 

And the US agricultural lobby will dictate the terms that will decimate British farming.

 

Exactly, rarely in the field of human endeavour have any group of people so effectively shafted the future of their own economy. The US is laughing at us. I have falang friends here from all over the world, they are laughing also, many of them more in pity than in disdain, which at least is considerate of them. 

 

You will note that the threat to tax multinationals has been put on the table by the brave bold Boris. Unfortunately he was not quite so brave and bold when it came to curbing the  UK tax avoidance schemes by his own rich friends, but then which Tory would care to offend the owners of the gutter press. 

 

Never fear we "Got your country back" and we "Took back control" pity we turned it into an economic basket case in the process. 

3 hours ago, PhonThong said:

So London wants? Great way to start out by threatening to tax U.S. companies. I say, let them squirm for a while. The E.U. is still a major trading partner for the U.S.. 

Are you trying to claim UK digital services companies never pay federal taxes in the US?

Edited January 24, 20206 yr by simple1

2 hours ago, Chomper Higgot said:

Nor can any prevent the consequences, in this case the US will dictate UK tax policy wrt US companies.

 

The US Pharma lobby will dictate the prices the UK will pay for medicines ( I’ll refer you to US insulin prices as a portent of what the UK will face).

 

And the US agricultural lobby will dictate the terms that will decimate British farming.

 

Given your track record re predictions this has made my day ????

13 hours ago, GinBoy2 said:

How exactly does that work?

 

A trade market of 60M, and a military which has been cut to the bone and barely functional.

 

What again does the US need the UK for?

America's first line of defence for one

5 hours ago, Thongkorn said:

America's first line of defence for one

Yes, I am so happy that in the case of a USA/Russia war, My country will become a scorched battleground while the USA public watches from their sofas and nibble popcorn .......