3 ms·
Apparently yes: A transaction of the type the president envisions could also prove more expensive than the one Microsoft described on Sunday. Trump said Monday
by czzr 6y ago
Apparently yes:
A transaction of the type the president envisions could also prove more expensive than the one Microsoft described on Sunday. Trump said Monday that part of the amount paid to buy TikTok would have to come to the U.S. Treasury Department because it would be making the deal possible.
“It’s a little bit like the landlord/tenant; without a lease the tenant has nothing, so they pay what’s called ‘key money,’ or they pay something,” Trump said. “But the United States should be reimbursed or should be paid a substantial amount of money, because without the United States they don’t have anything, at least having to do with the 30%.”
https://www.cnbc.com/2020/08/03/president-trump-might-be-easier-if-microsoft-buys-all-of-tiktok.html https://www.cnbc.com/2020/08/03/president-trump-might-be-eas...
So, to summarise: the president of the United States is openly advocating applying illegal real estate extortion/bribery practices to major M&A deals with geopolitical implications.
- pjc50 6y ago> So, to summarise: the president of the United States is openly advocating applying illegal real estate extortion/bribery practices to major M&A deals with geopolitical implications Well, yes, because he's spent his entire career doing that and now he's President. See the case the NY AG is building against him.
- londons_explore 6y agoIs it any different than just having a tax on purchasing foreign companies? It's the same as a tax on purchasing foreign goods, which is already in place for goods from China in the form of tariffs.
- pjc50 6y agoForgive me if I'm not familiar with the process, but aren't taxes set by Congress?
- rsynnott 6y agoI mean, if such a tax existed, sure (though such a tax would probably not be a great idea...). However, there is no relevant tax.
- InitialLastName 6y agoTariffs aren't a tax on purchasing foreign goods. I can buy as many tons of steel as I'd like in China while paying no money to the US Government (as long as I can export the money, which is a different issue). Tariffs are taxes on importing foreign goods. That would only even conceivably be comparable if Microsoft were planning to relocate TikTok to the US; as it sounds like they're planning to relocate it to London, that wouldn't apply.