Biden’s International Trade Big Tech Cronyism Is Ridiculously Small Ball | The Freedom Pub – Somewhat Reasonable – Heartland Institute

Seton Motley is the president of Less Government, a DC-based non-profit organization dedicated to reducing the power of government and protecting the First Amendment from governmental assault.

One of America's leading authorities on technology and telecom policy, Motley is a writer, television and radio commentator, political and policy strategist, lecturer, debater, activist, and policy advisor to The Heartland Institute.

President Donald Trump began to revolutionize US trade policy for the very much better. Wed spent decades getting royally screwed by everyone else on the planet. Wed spent more than half a century committing slow-motion national suicide to the perpetual benefit of Communist China.

Trump put our outsourcing everything to corrupt China on the national radar. We went from not talking about it at all to roundly denouncing it in about three Trump seconds. Suddenly everyone was conversant in the Uyghurs west China plight. Trumps Make America Great Again easily transmogrified into a national movement to Make It in America Again.

Trumps use of tariffs wasnt because he liked tariffs. It was because he disliked everyones tariffs. And trade limits. And subsides. Trump imposed tariffs upon countries that were massively subsidizing their exports to us and taxing and severely limiting their imports from us. Trump wanted to reduce all of these anti-trade impositions from and by everyone.

The point of Trumps trade policy was identical to the point of all Trump policy: Make things better for Average Americans. Outsourcing everything to China and everywhere else is a huge boon to Americas Bigs Big Tech, Big Business, Big Banks, Big Stocks, etc. But it royally screws Average Americans. Allowing foreign countries to export their domestic cronyism to us is a huge boon to Americas relocating Bigs but it royally screws Average Americans.

Trump was trying to undo many decades of trade dumbness. The underlying theme of all the dumbness was cronyism. Big Cronies benefited Average Americans got screwed.

Bidens trade people have spent most of its four months in power almost singularly focused on getting monstrous Big Tech out from under some international digital taxes. Trump too was opposed to these taxes. But Biden is nigh myopically working to end/prevent them to the exclusion of almost all other things trade. Its almost as if Biden issupplicant to Big Techs bidding.

Europes Digital Service Taxes in the Crosshairs:

USTRs potential action against Austria, India, Italy, Spain, Turkey and the U.K. has its roots in the Trump administration.

But U.S. Trade Representative Katherine Tai, in one of her first moves after taking office in March, issued a set of reports that found each of the six countries had adopted a digital service tax that unfairly hurts U.S. commercial interests.

The OECD talks have definitely advanced since Treasury Secretary Janet Yellen and her team took the reins, Chip Harter, a consultant with PwC, told our colleagues at Morning Tax. Harter was Treasurys lead negotiator under Yellens predecessor, Steven Mnuchin.

Tariff Hearings Shift Focus to India:

USTR will conclude a series of hearings to gather feedback on retaliatory tariffs against six countries seeking to impose digital services taxes on American firms.

After four years of Democratsincessantly whiningabout Trumps judicious use of tariffs to better things for Average Americans? Biden prepares to tariff to benefit Big Tech.

U.S. Trade Chief Readies Tariffs Against Six Countries Over Digital Taxes

These foreign nations are looking to impose upon US Big Tech companies what is known as a Digital Services Tax (DST).What is a DST?:

(S)ome countries are seeking to impose taxes on multinational tech companies based on their digital rather than physical presence.

Now, you may oppose the DST predicated upon the principle of wanting less taxes everywhere. So do I. But that absolutely isnt a principle Biden shares with us.

Biden Will Reportedly Announce a $3.5 Trillion Tax Hike

Im guessing its the fact that other governments besides Bidens gets the tax money.

You may oppose the DST predicated upon the principle of not taxing people who dont live in your country. So do I. But that absolutely isnt a principle Biden shares with us.

Biden Plan Sets Tax Penalties for Companies Offshore Profits

There are LOTS of really important things trade on which to focus. Almost all of them are getting short shrift from Biden so that Biden can provide crony assistance to Big Tech.

And here are some more fun numbers. While looking to raise our taxes by trillions Biden is fighting tooth and nail to save obscenely rich Big Tech mere millions:

The potential tariff hit: In its investigations, USTR found that U.S. internet companies face a combined digital services tax liability of up to $880 million in the six countries.

So all six countries are looking to impose a combined tax bill on all of Big Tech of less than $1 billion. That is NOTHING to these corporate monstrosities.

Lets peruse some Big Tech Market Caps, shall we?

Apple: $2.1 trillion

Microsoft: $1.84 trillion

Amazon: $1.64 trillion

Google: $1.52 trillion

Facebook: $888.4 billion

Lets pretend each Big Tech company could take respective turns paying the annual DST bill to all six countries for all Big Tech companies. And for simplicitys sake lets round the tax bill up 12% to an even $1 billion.

$1 billion is 0.0476% of Apples Market Cap. $1 billion is 1.31% of Apples$76.31 billion 2020 net profits.

For Big Tech, these digital taxes are a rounding error. Each Big Tech company has more in its petty cash drawer. This is NOTHING to them.

Of course, Big Tech doesnt want to pay even these relatively minuscule amounts. That is understandable.

Biden going all out to get Big Tech to not have to pay them? To the exclusion of nigh all other US trade policy?

That is Big Government cronyism pathetic-ness.

[Originally posted on RedState]

Bidens International Trade Big Tech Cronyism Is Ridiculously Small Ball was last modified: May 17th, 2021 by Seton Motley

Read the rest here:

Biden's International Trade Big Tech Cronyism Is Ridiculously Small Ball | The Freedom Pub - Somewhat Reasonable - Heartland Institute