Democratic Leaders Encouraged That DSTs Can Be Avoided
Senate Finance Committee Chairman Ron Wyden, D-Ore., and House Ways and Means Committee Chairman Richard Neal, D-Mass., "are optimistic that a strong multilateral agreement can be reached to harmonize our international tax rules, end the race to the bottom and…
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put a stop to digital services taxes," they said in a joint statement. The Office of the U.S. Trade Representative has threatened additional 25% tariffs on billions of dollars' worth of imports from European countries, Turkey and India over their proposed DSTs (see 2106020047), but has not implemented any of the Section 301 tariffs as the administration waits to see how negotiations go at both the G-7 and the Organization for Economic Cooperation and Development (OECD). Canadian Finance Minister Chrystia Freeland told reporters June 2, "The new US administration ... has taken an approach of compromise and I think that really does mean a deal is within reach." She said that in Canada's view it's important that both the global minimum corporate tax and DST be solved together. The New York Times reported that a Treasury Department official was optimistic about negotiations, as well. The newspaper said that the OECD's outgoing secretary general said it's possible a deal on both DSTs and global taxation could be reached in October.