The managing German Finance Minister Peter Altmaier (CDU) and four of his European counterparts have warned US government of negative consequences of ir planned tax reform. The ministers from Germany, France, Great Britain, Italy and Spain fear a disadvantage of foreign companies.
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In a letter announced on Monday to US Treasury Secretary Steven Mnuchin states that some of planned regulations threatened to violate rules of World Trade Organization and OECD’s agreements in fight against profit shift.
The ministers are concerned, among or things, with a planned tax of 20 percent on payments to parts of group outside United States. In this way, legislators in United States want to complicate profit shifts, in which companies artificially move parts of ir business into tax havens. The European ministers, however, fear de facto discrimination against non-American companies and a violation of agreements to avoid double taxation.
This threatens to seriously undermine transatlantic trade and investment, according to ministers in ir letter. The US tax plans could also affect international financial markets and international banking and insurance transactions.
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Trump had promised that reform – first major restructuring of tax since 1986 – would significantly zuentlasten citizens and businesses. In particular, middle class is to benefit from reform after SeinerDarstellung. In addition, DieUnternehmenssteuern should be reduced from 35 to up to 20 percent. In opinion of critics, however, project would benefit all wealthy and corporations and at same time increase Schuldenbergder us massively.
