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| U.S. Withdraws From Global Digital Tax Talks | U.S. Withdraws From Global Digital Tax Talks |
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| WASHINGTON — The Trump administration has suspended fraught international tax negotiations with European countries and warned that it will retaliate if they move forward with plans to impose new taxes on American technology companies like Amazon, Facebook and Google. | WASHINGTON — The Trump administration has suspended fraught international tax negotiations with European countries and warned that it will retaliate if they move forward with plans to impose new taxes on American technology companies like Amazon, Facebook and Google. |
| The decision, conveyed in a letter from Treasury Secretary Steven Mnuchin to European finance ministers last week, comes as global talks have stalled over how to tax commerce that takes place online, particularly in countries where companies sell goods and services but have no physical presence. | The decision, conveyed in a letter from Treasury Secretary Steven Mnuchin to European finance ministers last week, comes as global talks have stalled over how to tax commerce that takes place online, particularly in countries where companies sell goods and services but have no physical presence. |
| The collapse of negotiations could set off an escalating trade war and saddle multinational corporations with vast new uncertainty over their future tax bills, at a time when the coronavirus has upended supply chains and business models worldwide. | The collapse of negotiations could set off an escalating trade war and saddle multinational corporations with vast new uncertainty over their future tax bills, at a time when the coronavirus has upended supply chains and business models worldwide. |
| A conflict with Europe appeared inevitable as European officials responded forcefully to the Trump administration’s withdrawal. The French finance minister, Bruno Le Maire, denounced the move as “a provocation,” and the top economic policymaker in Brussels warned that Europe would move to tax American digital giants if no deal was reached with the United States. | A conflict with Europe appeared inevitable as European officials responded forcefully to the Trump administration’s withdrawal. The French finance minister, Bruno Le Maire, denounced the move as “a provocation,” and the top economic policymaker in Brussels warned that Europe would move to tax American digital giants if no deal was reached with the United States. |
| “I very much regret the U.S. move to put the brakes on international talks on taxation of the digital economy,” said Paolo Gentiloni, the European economic commissioner, adding that he hoped the withdrawal was just a temporary setback. If a global solution isn’t reachable this year, he added, “we will come forward with a new proposal at E.U. level.” | “I very much regret the U.S. move to put the brakes on international talks on taxation of the digital economy,” said Paolo Gentiloni, the European economic commissioner, adding that he hoped the withdrawal was just a temporary setback. If a global solution isn’t reachable this year, he added, “we will come forward with a new proposal at E.U. level.” |
| France will also move to tax digital giants this year if the United States doesn’t return to the negotiating table, Mr. Le Maire said. “We were a few inches from an agreement,” he told France Inter radio on Thursday. “What is this way of treating the allies of the United States, by systematically threatening us with sanctions?” he added. | France will also move to tax digital giants this year if the United States doesn’t return to the negotiating table, Mr. Le Maire said. “We were a few inches from an agreement,” he told France Inter radio on Thursday. “What is this way of treating the allies of the United States, by systematically threatening us with sanctions?” he added. |
| In January, just before the coronavirus swept through Europe, France said it would suspend until the end of 2020 the collection of a digital tax it had planned to impose on Apple, Facebook and other digital giants this year, as part of an effort to resolve the dispute with Washington. With the dispute now flaring again, “there will, indeed, be a taxation of digital giants in 2020 in France,” Mr. Le Maire said. | In January, just before the coronavirus swept through Europe, France said it would suspend until the end of 2020 the collection of a digital tax it had planned to impose on Apple, Facebook and other digital giants this year, as part of an effort to resolve the dispute with Washington. With the dispute now flaring again, “there will, indeed, be a taxation of digital giants in 2020 in France,” Mr. Le Maire said. |
| As the United States and countries in Europe work to contain the pandemic and prop up their economies, a growing number of countries have imposed or proposed taxes on digital activity that would largely apply to American corporations. | As the United States and countries in Europe work to contain the pandemic and prop up their economies, a growing number of countries have imposed or proposed taxes on digital activity that would largely apply to American corporations. |
| The United States has threatened retaliatory tariffs in response and has developed plans to tax French wine, handbags and cookware. President Trump has also threatened to impose tariffs on European imports in response to the taxes. | The United States has threatened retaliatory tariffs in response and has developed plans to tax French wine, handbags and cookware. President Trump has also threatened to impose tariffs on European imports in response to the taxes. |
| Industry groups have largely cheered the administration’s stance, but they have also encouraged Mr. Trump to remain engaged in multilateral talks through the Organization for Economic Cooperation and Development. | Industry groups have largely cheered the administration’s stance, but they have also encouraged Mr. Trump to remain engaged in multilateral talks through the Organization for Economic Cooperation and Development. |
| On Wednesday, Robert E. Lighthizer, the United States trade representative, confirmed that the country was withdrawing from the discussions during a House Ways and Means Committee hearing. | On Wednesday, Robert E. Lighthizer, the United States trade representative, confirmed that the country was withdrawing from the discussions during a House Ways and Means Committee hearing. |
| “The secretary made the decision that rather than have them go off on their own he would just say we’re no longer involved in the negotiations,” Mr. Lighthizer said, referring to Mr. Mnuchin. | “The secretary made the decision that rather than have them go off on their own he would just say we’re no longer involved in the negotiations,” Mr. Lighthizer said, referring to Mr. Mnuchin. |
| In the letter, which was obtained by The Financial Times, Mr. Mnuchin described the negotiations as being at an “impasse” and said that they should be put on hold while the countries addressed the public health crisis. | In the letter, which was obtained by The Financial Times, Mr. Mnuchin described the negotiations as being at an “impasse” and said that they should be put on hold while the countries addressed the public health crisis. |
| “This is a time when governments around the world should focus their attention on dealing with the economic issues resulting from Covid-19,” Mr. Mnuchin wrote. | “This is a time when governments around the world should focus their attention on dealing with the economic issues resulting from Covid-19,” Mr. Mnuchin wrote. |
| “The United States has suggested a pause in the O.E.C.D. talks on international taxation while governments around the world focus on responding to the Covid-19 pandemic and safely reopening their economies,” said Monica Crowley, a Treasury spokeswoman. | “The United States has suggested a pause in the O.E.C.D. talks on international taxation while governments around the world focus on responding to the Covid-19 pandemic and safely reopening their economies,” said Monica Crowley, a Treasury spokeswoman. |
| Earlier this year, it appeared that the digital tax fight would dominate international economic discussions in 2020. | Earlier this year, it appeared that the digital tax fight would dominate international economic discussions in 2020. |
| Several European countries, led by France, have been rolling out digital services taxes, which would fall heavily on American internet companies. Italy, Spain, Austria and Britain have all announced plans to levy digital services taxes, which impose duties on the online activity that takes place in those countries, regardless of whether the company has a physical presence. | Several European countries, led by France, have been rolling out digital services taxes, which would fall heavily on American internet companies. Italy, Spain, Austria and Britain have all announced plans to levy digital services taxes, which impose duties on the online activity that takes place in those countries, regardless of whether the company has a physical presence. |
| Updated June 22, 2020 | Updated June 22, 2020 |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Negotiators had established an end-of-year deadline to strike a deal that would set international standards for how and where online activity may be taxed. The talks hit a snag late last year when Mr. Mnuchin told the O.E.C.D. that the United States wanted American companies to essentially have the option to avoid some of the taxes. | |
| Talks continued this year, but the “safe harbor” approach that the United States had called for continued to be an obstacle as recently as February, when finance ministers last gathered in person at the Group of 20 meeting in Saudi Arabia. | Talks continued this year, but the “safe harbor” approach that the United States had called for continued to be an obstacle as recently as February, when finance ministers last gathered in person at the Group of 20 meeting in Saudi Arabia. |
| The American business community is divided over the talks. Some multinational companies, including many tech giants, are eager for an agreement that would head off the complications of complying with different digital services taxes in a wide range of countries. Other companies fear the agreement would raise their taxes unexpectedly. | The American business community is divided over the talks. Some multinational companies, including many tech giants, are eager for an agreement that would head off the complications of complying with different digital services taxes in a wide range of countries. Other companies fear the agreement would raise their taxes unexpectedly. |
| Daniel Bunn, the vice president for global projects at the nonpartisan Tax Foundation, said that “the risk for an economically harmful tax and trade war in 2020 is significant.” | Daniel Bunn, the vice president for global projects at the nonpartisan Tax Foundation, said that “the risk for an economically harmful tax and trade war in 2020 is significant.” |
| “Even as O.E.C.D. negotiations progressed, more unilateral digital tax measures have been put forward by governments around the world and the U.S. government has made it clear that it will respond to those policies,” Mr. Bunn said. He urged countries to instead work together to promote stability and growth. | “Even as O.E.C.D. negotiations progressed, more unilateral digital tax measures have been put forward by governments around the world and the U.S. government has made it clear that it will respond to those policies,” Mr. Bunn said. He urged countries to instead work together to promote stability and growth. |
| Frustration among Trump administration officials about the direction of the negotiations has been growing, raising speculation that the United States will turn to a more aggressive approach. | Frustration among Trump administration officials about the direction of the negotiations has been growing, raising speculation that the United States will turn to a more aggressive approach. |
| Representative Lloyd Doggett, Democrat of Texas, pressed Mr. Lighthizer, the Trump administration’s top trade negotiator, on the course of the talks, saying he was concerned that the administration was “about to start another trade war.” | Representative Lloyd Doggett, Democrat of Texas, pressed Mr. Lighthizer, the Trump administration’s top trade negotiator, on the course of the talks, saying he was concerned that the administration was “about to start another trade war.” |
| Mr. Lighthizer defended the administration, saying he agreed “completely” with what the United States did at the O.E.C.D. | Mr. Lighthizer defended the administration, saying he agreed “completely” with what the United States did at the O.E.C.D. |
| “The reality was, they all came together and agreed that they’d screw America, and that’s just not something that we’re ever going to be a part of,” he said. “I don’t want tax systems that unfairly treat American companies,” Mr. Lighthizer added. | “The reality was, they all came together and agreed that they’d screw America, and that’s just not something that we’re ever going to be a part of,” he said. “I don’t want tax systems that unfairly treat American companies,” Mr. Lighthizer added. |
| Reporting was contributed by Alan Rappeport, Ana Swanson and Jim Tankersley from Washington; and Liz Alderman from Paris. | Reporting was contributed by Alan Rappeport, Ana Swanson and Jim Tankersley from Washington; and Liz Alderman from Paris. |