Democrats tend to increase the power of the federal government over American workers and businesses.Thank you for reading this post, don't forget to subscribe!
But now they want to give European bureaucrats significant control over the American economy by imposing European regulations designed specifically to harm American companies.
The Biden administration has accomplished part of this agenda through executive orders. Congress has a golden opportunity to end this.
The EU has long treated American companies like piggy banks in order to expand its social welfare state by tens of billions of dollars per year. The EU may be incapable of technological innovation, but it is adept at inventing new ways to separate American companies from their money. (Related: Grover Norquist: He won’t be president, but this red state government is winning another important race)
New forms of taxation such as the “Digital Services Tax” and regulation such as the “Digital Services Act” and the “Digital Markets Act” are clearly designed to plunder US companies and exempt their European counterparts.
A 2022 study estimated that the new DMA and DSA rules would force US companies to pay between $22 to $50 billion in new compliance costs, which would be borne by US households already suffering from high inflation. Failure to comply with DMA regulation may result in fines totaling 10% of annual turnover. Handing all this money over to EU regulators seriously hinders the ability of American companies to compete on the global stage.
Instead of standing up for American jobs, the Biden administration undermines them on the global stage every chance it gets. In December, Justin Trudeau told the media that President Biden was not concerned about a new Canadian tax on primarily American streaming services. There was also no opposition from the Biden administration about Canadian content quotas hurting American streaming companies. This is a clear signal from the Biden administration to foreign governments that they can tax American companies as per their wish. The Biden administration also not only caved in, but welcomed the Paris-based OECD’s “global minimum tax” regime, effectively eliminating tax competition and making it impossible for the US to compete.
US Trade Representative Katherine Tai recently announced she was abandoning long-standing US digital trade demands made by the Trump administration in 2019, insisting that WTO e-commerce rules prevent free border crossing. Allow data flows and prohibit national requirements for data localization and software source code review. , Tai’s announcement was a formal signal that the Biden administration is leaning toward progressive activists who would put American companies at a clear disadvantage — to the benefit of foreign adversaries.
USTR is not the only agency to bow to foreign regulators. Biden’s Federal Trade Commission, led by progressive activist Lina Khan, also sent staff to “assist” the EU with DMA implementation. At a hearing last year, Khan had attempted to portray this collusion as “good governance”. For Biden, sending American bureaucrats to take marching orders from European regulators is good governance. (Related: Stephen Moore: It’s time for the Fed to abandon the most feeble-minded theory in economics)
Lawmakers from both parties have condemned Tai’s sudden reversal of decades-long digital trade policy.
House Ways and Means Chairman Jason Smith (R-Mo.) said Tai’s withdrawal “ceases the playing field to the Chinese Communist Party and abandons our closest trading partners.” In a letter, Senate Republicans said, “Ambassador Tai makes clear… that foreign countries are free to discriminate against American companies… failing to stand up for America and against foreign discrimination – especially from China – contrary to the USTR mission.” Representatives Darin LaHood (R-Ill.) and Susan DelBene (D-Wash.) said Tai’s recall was made “without the consent of Congress.”
The center-right community has widely condemned Biden’s capitulation to foreign regulators – 30 free-market groups and activists joined in a letter supporting Congressional efforts to limit Biden’s losses.
Lawmakers can begin to rein in these agencies by cutting their funding. In multiple congressional hearings, Khan has failed to explain what the FTC is already doing with the taxpayer resources at its disposal, let alone attempt to justify its alleged need for hundreds of millions in additional funding. Is. Tai uses the resources at his disposal to undermine American companies abroad, in clear violation of the USTR’s charter.
Instead of protecting American interests abroad, the Biden administration is doing everything in its power to undermine America’s key industries. If left unchecked, Biden’s perverse agenda will cripple the innovation and entrepreneurship that makes the American economy the envy of the world. Congress must intervene and right the ship before it is too late.
Grover Norquist is the president of Americans for Tax Reform.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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