Yesterday, Treasury Secretary Steven Mnuchin spoke out against the proposed European Union digital services tax, an unfair tax scheme targeting American businesses, and encouraged EU members to continue to work toward a better solution.
National Taxpayers Union Senior Fellow Mattie Duppler issued a statement in support of Secretary Mnuchin’s comments:
"We are encouraged to see Secretary Mnuchin standing up for American companies and rejecting the ill-designed, discriminatory tax on digital services being proposed by the European Union. NTU has previously pointed out that while the plan itself is cause for concern for all countries doing business in the EU, the tax would disproportionately hurt American companies in digital advertising, data, and other services. EU officials admit that the largest proportion of companies hit by the new tax will be American firms. NTU recently sent a letter to Secretary Mnuchin warning that the new tax plan proposed by the EU that would hurt American businesses operating abroad and threaten economic prosperity following the Tax Cuts and Jobs Act.
“NTU applauds Secretary Mnuchin's efforts to stop this foreign government overreach and we urge him to continue to support free enterprise by opposing efforts by foreign authorities to unfairly tax outside of their borders."