American shareholders will lose tens of billions of dollars in investment income from holdings in Silicon Valley companies like Google and Apple if several EU sham lawsuits prevail.
These are generally suits alleging that America’s dominant tech companies are acting like monopolists. Or to borrow a term, they are “price gouging.”
The EU’s courts outrageously ruled this week that Apple shareholders owe Europe $13.5 billion in back taxes because the company took advantage of Ireland’s low 12.5% tax rate. The EU “competition chief” declared that this sham court decision “is a big win for European citizens and tax justice.”
Meanwhile, Google shareholders are now forced to pay the EU $2.4 billion, because its search engine has become dominant in the European market. The European search engines are so inferior that nobody wants to use them. So sue American companies.
Let’s be clear here: the EU has been crushed by American tech dominance. No company in socialist Europe can compete with Google, Apple, Microsoft, Amazon, Nvidia, Meta, and so on. See the chart below. Since they can’t compete, they invent sore-loser lawsuits.
The bigger villain here is the Biden administration. Instead of defending American shareholders from the EU predators, the Biden regulators encourage and give legitimacy to the foreign courts.
How can the U.S. government complain against specious antitrust attacks (tech prices are falling dramatically) against Google and Apple when our own regulators at the FTC and the Justice Department are bringing copycat lawsuits against our tech giants in US courts?
The capricious fine against Google is a result of an American company shopping around to find the lowest tax climate (Ireland) for doing business. This is illegal?
The Biden administration wants it to be. Their moronic global minimum tax is a ploy to enable governments to extract as much money as possible from corporate America. They want to raise the total federal and state corporate income tax to 33% – even higher than the tax in the EU.
It’s an unpatriotic strategy that puts America last.