Trump trade war threat over tax shows the drawbacks of globalisation

A family at war? They may look and act the same, but that doesn’t mean Donald Trump won’t attack Boris Johnson if he feels like it [Composite: Laura Tisdale/Twitter].

This is awkward, with Boris Johnson desperate to get a trade deal between the UK and the USA.

Donald Trump is threatening reprisals if Johnson goes ahead with a plan to tax US tech corporations like Google and Facebook on profits they make from UK customers.

This Writer understands that it is possible to prevent foreign tech companies from operating in the UK – don’t China and North Korea do this?

But if the UK did this, then the US government could impose crippling sanctions on this country.

The simple fact is that Trump has Johnson over a barrel.

And where Trump goes, others will follow. The loss to the UK’s tax take must be staggering.

And it’s all in line with Conservative economic policy.

Ever since Thatcher, Tories have demanded that businesses across the world must be able to operate across the world if they can, but must be allowed to operate from the country of their choice.

And that’s where they are taxed.

I suppose the answer was to demand that these multinationals set up subsidiaries in the countries where they operated. But wasn’t that the situation before Thatcherism?

It seems the Tories deliberately harmed the UK economy with this policy.

Can anybody explain the thinking that supported this economic disaster?

Source: Trump administration threatens trade war with UK over digital tax plan | The Independent

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