Europe is trying to deal with back against U.S. President Donald Trump’s tax reforms.
There’s one problem: The EU can’t agree with how to respond.
The region’s finance ministers gathered Tuesday in Brussels to respond to U.S. reforms that expose EU welfare states to tax competition with a grand scale.
They met amid growing worries in Europe that Trump’s overhaul could make the tax systems on either side of the Atlantic incompatible, which includes a risk of companies forced to pay twice with their international earnings.
But despite these worries shared by a lot of across the EU, finance ministers faced difficult probabilities of?agreeing to an in depth response to Trump’s tax plan, officials from a few countries said before their gathering. Country representatives just weren’t immediately open to comment on Tuesday.
American tech companies hold greater than $2.6 trillion of combined assets overseas.
Not only is Europe divided between countries like Ireland, which aim to attract investment thanks to low corporate tax rates, and other wines like France, which are usually pushing to slap new levies on American tech giants. But the gap between the above camps is wider prior to now.
Washington’s tax reforms, many in Europe argue, could undermine a years-long revamp of global tax rules, and let the EU’s low-tax countries to argue the masai have a right to compete on taxes.