Originally posted by: heartsurgeon
the
Euroweenies are up to their old tricks..
they are tyrying to revive their own lackluster economies at our expense..
the "illegal" "scheme" that they have sought to sanction, is a element of the U.S. tax code that was adopted many years ago:
quoting from
Tech Law Journal
"Most nations have a territory tax regime, by which they tax the income of corporations within their territory. The U.S., in contrast, has a global tax regime dating back to the 19th Century. American corporations are taxed by the United States government for their domestic and foreign income. That is, under the basic rules, if an American corporation sells its products in France, the U.S. taxes the income. However, if a French corporation sells its products in the U.S., France does not the income of the corporation operating in the U.S.
This puts U.S. corporations at a competitive disadvantage with respect to their foreign competitors when competing in a global economy. Hence, Congress has enacted various exceptions to the general rule, through such methods as the foreign tax credit, the Domestic International Sales Corporation (DISC), the Foreign Sales Corporation (FSC), and finally, HR 4896."
"U.S. exporters, and their many supporters in Congress and the administration, argue that this is simply leveling the playing field between U.S. and European companies"
"The EU contends that by giving tax breaks to U.S. exporters, the U.S. is, in effect, subsidizing exports, in violation of its trade agreements. John Richardson, the Deputy Head of the EU Delegation to the US, adamantly insists that the basis of the EU complaint against the FSC tax regime, and HR 4986, is that it is an illegal export subsidy."
"However, there is little real opposition in Europe to the bill itself. Few European companies are seeking protection from U.S. technology companies. However, aircraft exporter Boeing is in competition with the European Airbus, and many in Europe would like to impose a competitive disadvantage upon Boeing.
Rather, the FSC issue is interrelated with agricultural issues. The EU maintains protectionist policies to support its politically powerful but inefficient agricultural sector. The U.S. objects to this. Moreover, the U.S. has submitted complaints to the WTO, and won. This has greatly upset many in Europe. The EU complaint about the FSC is, in part, a strategy to obtain a bargaining chip to use in negotiations over agricultural trade.
By threatening the bottom line of technology, aircraft, and other industry sectors in the U.S., the EU hopes to deter the U.S. from continuing its efforts to terminate the EU's protectionist agricultural policies. But, if the EU and U.S. do not reach some sort of comprehensive trade agreement, and the WTO again finds the U.S. tax regime to be illegal, Europe may retaliate by imposing high tariffs on the products of U.S. technology companies."
executive summary....the
Euroweenies want us to apply a tax on our companies, that they do not apply to their own companies...they want to use this as a bargaining chip to protect they own subsides of agriculture, which are under attack