WTO, EU Defining U.S. Tax Policy. (Insider Report)
Amid the welter of controversies that culminated in the American War for Independence, one principle was understood and supported throughout the colonies: "No taxation without representation." Decisions about taxing Americans, the colonists insisted, were not to be made overseas by officials unaccountable to taxpayers and hostile to American interests. This principle survived the test of arms in our Revolution and was a foundation stone in our constitutional republic. But our nation's involvement in the World Trade Organization (WTO) has effectively reversed that principle, as it applies to tax incentives for U.S. exporters.
On August 30th, reported Reuters, "The European Union won approval ... to slap a record $4 billion in sanctions on the United States over illegal U.S. export tax breaks The award was granted by a special WTO panel of arbitrators, who ruled that "the amount of $4.043 billion ... can be considered to be a reasonable approximation of the actual value of the subsidy" supposedly created by tax concessions to large exporters such as Boeing and Microsoft.
Only those whose minds are shackled by Marxist assumptions would equate a "tax break" -- meaning an amount not taken by the government -- with a "subsidy" -- meaning an amount given by government to a specific beneficiary. …