Taxpayer Group Praises President Trump for Pushing Back Against Foreign Tech Taxes

FOR IMMEDIATE RELEASE

Contact: Kara Zupkus (224)-456-0257

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) praised President Trump for instructing the U.S. Trade Representative to initiate a Section 301 investigation against Brazil for its “continued attacks on the Digital Trade activities of American Companies.” Brazil recently shifted to a destination-based value-added tax system (VAT) that, when implemented, will impose significant administrative and financial costs on U.S. tech companies doing business in Brazil. Companies would have to pay a combined tax rate of 26.5 percent and comply with onerous registration, collection, and remittance requirements. Brazil has also previously imposed bans on social media platforms, required content moderation, and enacted ill-tailored telecommunications regulations on tech companies.

TPA President David Williams offered the following statement:

“America’s tech companies offer a combined 550 million consumers in the U.S. and Brazil a low-cost (and often no cost) way to connect with friends and family, grow their businesses, and keep up with current events. It is awful that the Brazilian government wants to punish these companies for their success and make it more difficult for Brazilians to access the digital domain. Consumers in both countries and around the globe will have to foot the bill for this policy in the form of higher prices and reduced availability of their favorite services. President Trump deserves applause for standing up to these international cyberbullies.”

“Unfortunately, proposed digital taxes and regulations targeting American companies are nothing new, and many more proposals will surely appear in other countries. The European Union (EU)’s Digital Markets Act is forcing tech innovators to rethink their investments that benefit millions of users, while Canada recently came close to enacting their own misguided digital taxation scheme. Fortunately, President Trump persuaded Canada to drop its disastrous plan and is now fighting the EU tooth-and-nail on its abuse of American companies. Hopefully, Brazil responds to American leadership and gives consumers a well-deserved break.”