The top five European powers take a stand against Donald Trump's tax reform. Italy, Germany, the United Kingdom, France and Spain have sent a letter to the US Treasury Secretary, Steven Mnuchin, with the aim of "warn" the US about the dangers that the new fiscal policy wanted by the tenant of the White House could entail for trade and international markets.
'It is important that the US government's rights over domestic tax policy are exercised in a way that adheres to the international obligations signed. The inclusion of certain less conventional provisions could contravene US double taxation treaties and may risk having an importantdistortive impact on international trade”.
A hard and clear stance, signed by Treasury Ministers of the 5 States: Pier Carlo Padoan for Italy, Peter Altmaier for Germany, Bruno Le Maire for France, Philip Hammond for the United Kingdom and Cristobal Montoro Romero for Spain.
The five ministers also indicate the risk of a "distortion to the detriment of financial markets international".
We recall that the reform provides, among other things, the reduction from 35 to 20% of the rate on companies and on the richest taxpayers and the elimination of the obligation for citizens to take out health insurance (a cornerstone of theobamacare), but also regulations on foreign companies that have pushed some economists speak of a "border tax", i.e. di nationalist taxes that violate the rules of international trade. Measures that will cause, according to forecasts, a increase of the deficit of 1.400 billion dollars in 10 years.
The text approved in early December by the US Senate has yet to be harmonized with the one released by the Chamber last November, an important step that the Republicans have promised to complete by Christmas.
