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International Tax System: Where Do OECD Negotiations Stand?

Digital tax talks may result in a trade war even if Democrats win the White House.

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A brewing fight about which country has the right to tax some of the world’s most profitable companies, including Facebook Inc. and Alphabet Inc.’s Google, could devolve into a multi-front trade war, regardless of whether President Donald Trump is still in the White House.

Even if a Democrat wins the presidency in November, he or she may be tempted to continue the Trump administration’s policy of using trade sanctions to retaliate against new taxes on U.S. tech companies.

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