Stephen Minutia discussed on Marketplace


Of January it is always a long everybody the macro economic quote over the day to day comes to us courtesy of treasury secretary Stephen minutia in via the World Economic Forum in Davos at which mission was on a panel where the conversation turned to European plans for special tax on big internet companies most of which the B. internet companies are of course American here is the treasure sector I think we've been pretty clear that we think that the digital taxes discriminatory in nature and you know if if people want to just arbitrarily put taxes on on our digital companies will consider arbitrarily putting taxes on car companies there is a lot in that sixteen spare seconds of audio so we're gonna take it apart a little bit here for a bit first the basics with Molly which is of course the host of marketplace that came on Hey guy bye to hit me with a a very quick primer on the idea of a digital tax explain yeah you have a lot of companies in Europe saying that there are these companies whose product is primarily digital right it depends on data from their citizens and they're making a lot of money in these countries and they're saying look we should get a piece of this revenue pie it's business being conducted here it's taking away from local businesses so France kind of kicked it off with this three percent digital tax and several other company countries are prepared to follow suit and the US to as Mr mission said it just does not like it why the US does not like it's they could a you you heard him say this discriminatory hit it really does you know the tax on companies that make more than about eight hundred and fifty million dollars in annual revenue globally and in the example just France do twenty five million euro worth of digital sales in that country so if you do that math that's about three companies Google Facebook Amazon you know in the end they're saying this is a target on American companies and it's taxing these companies over and over and over on the same revenue and what effect we should say that the president said maybe a couple weeks ago if anybody's gonna taxes companies America's gonna taxes companies others also that where does this go do you think right well not away you know despite the the sort of state of the discourse of the conversation about it you know Francis said it's going to move ahead with this tax Italy Turkey Austria Spain Belgium are all considering digital taxes and the fact is that this is a real issue that does have to get solved to this question of kind of how you deal with companies of this size that fundamentally don't have boundaries so there's talk of a global tax structure may be being worked out within the OECD that would be a major shift in global tax policy but without a doubt the conversations far from over into forget despite what the president said a lot of these become tech companies also don't pay their taxes run the United States right right interesting that this is country by country in Europe and it's not under the E. U. umbrella yeah exactly and I think that's what makes it so tricky now France has said that were there to be an easy you wide agreement on taxation they would be willing to go along with that that's a hard thing to work out and it wouldn't address any of the other countries that might come along and say that they also wanted digital tax mother would she does the marketplace tech talking digital tax stuff Molly thanks a lot my pleasure okay all right so the second piece of that mission quote the deserves a second look is the bit where he said the United States is going to arbitrarily imposed tariffs which is not the way it works marketplace a dealers on that one despite what the treasury secretary said in Davos this administration can't arbitrarily imposed taxes on whatever it wants the imposition of tariffs on any foreign goods for national security reasons falls under section two thirty two of the trade expansion act there is a procedure for going through section two thirty two and claiming national security that's Emily Blanchard she's an economics professor at Dartmouth College she says the argument the trump administration put forward back in may of last year was unprecedented in US trade policy that automobiles our national security issue because they are important for the US economy and US economic security is part of the broader national security the administration produced a report on why auto imports threaten national security but the White House has refused to release the report to Congress saying it would limit the administration's ability to negotiate further trade deals with Europe Japan and others Jamie Butters at automotive news says in theory he could see national security claims for auto imports if we imported all of our vehicles and we didn't have the ability to manufacture vehicles anymore than we would be at a disadvantage from a defense standpoint but he says that's a tough line to walk given how globally inter twined the auto industry has become an Emily Blanchard Dartmouth says that's exactly why any auto terrace would hurt American workers kind of ripple up and down the supply chain to parts producers and then to to further parts purchasers in alternately to the people buying those cars the American consumer I'm a dealer for market place on Wall Street today all up and then kinda knocked up we'll have the details when we do the numbers AMC is known for shows like breaking bad and the.

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