Will Johnson really dare  to incur Trump’s wrath with digital tax?

Thursday 5th December 2019

Prime Minister Boris Johnson was always going to be walking a tightrope politically when it came to his  his relations with Donald Trump. While it is vital that he appears to be a leading statesman on the world’s political stage, to be taken seriously by the UK’s electorate, bonding with a president who is extremely unpopular in Britain is an unwise move.

On his two visits to the UK this year, Trump has endorsed Johnson on camera, although when questioned about Labour leader Jeremy Corbyn he retorted that he was able to work with anyone, thereby offering a modicum of balance. However, there seems little doubt that the two men inhabit the same right-wing arena, exhibit the same populist tendencies, are famous for their verbal gaffes and even share a similar haircut.

It is also worth remembering that Johnson is relying heavily on trade deals with the US post-Brexit, which many fear will take years to implement, so maintaining that ‘special relationship’ is imperative.

However, it has now emerged that if Johnson does stay in Number 10, he would implement a digital sales tax to boost the coffers of GBplc.

It has been argued for some time that companies like Amazon, Google and Facebook simply do not pay a fair contribution to the tax revenues of countries that they sell to, and it seems that the 2 percent that the PM is suggesting would achieve this.

However, this is where Johnson is walking a tightrope, because when President Macron of France indicated that he was about to do the same thing, Trump threatened to impose taxes on French goods being imported to the States.

Warning that tariffs of up to 100 percent could be added to cheese, wine and fashion items, Johnson clearly lays himself bare to the same treatment.

However £500 million could be secured for the public purse with a 2 percent tax ( less than the 3 percent that France is about to implement ), and is something that Labour has already included in their tax policies in their manifesto.

The PM  stated on Tuesday, “ On the digital services tax, I do think we need to look at the operation of the big digital companies and the huge revenues they have in this country and the amount of tax that they pay.”

Will Johnson dare to create this tax and incur Trump’s wrath, perhaps as other countries do the same, especially in Europe, he might find his friends in Europe  are actually more ‘special’, than the ones across the Atlantic?

Government After General Election

Conservative Majority 1/3
Labour Minority 6/1
Conservative Minority 11/1
Labour – Snp Coalition 12/1
Conservative – Dup Coalition 18/1
Labour – Lib Dem – Snp Coalition 22/1
Labour – Lib Dem Coalition 25/1
Labour Majority 25/1
Conservative – Brexit Party Coalition 33/1
Conservative – Lib Dem Coalition 66/1
Lib Dem – Snp Coalition 200/1
Lib Dem Minority 200/1
Conservative – Labour Coalition 300/1
Lib Dem Majority 400/1
Brexit Party Minority 750/1

Government After General Election

5. Conservative – Dup Coalition
6. Labour – Lib Dem – Snp Coalition
7. Labour – Lib Dem Coalition
9. Conservative – Brexit Party Coalition
10. Conservative – Lib Dem Coalition
11. Lib Dem – Snp Coalition
13. Conservative – Labour Coalition
Odds correct as of 12th Dec, 09:35 . Odds are subject to change.
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