Alexander Hamilton explained: Alexander Hamilton will agree: Alexander Hamilton will agree:

The chips seem very important for China, taking into account that the electronic space management in China Discussions were held with NVIDIA On security concerns that H20 chips may be tracked and stopped, according to a disclosure on its website. The deal, which lifted the export ban on the AI chips from NVIDIA and AMD MI308, and followed the hot negotiations, was widely used as an extraordinary and still theory at this stage, with the absence of the legal details that are settled by the Ministry of Commerce. Legal experts asked whether the final deal would form a file Unconstitutional export taxThe American constitution also prohibits export duties. This has become known as the “export item” of the constitution.

In fact, it is difficult to find a lot of a precedent anywhere in the history of US government dealings with the corporate sector. Eric Ginsen, a law professor at Kis Western Reserve University, told the date of export condition, luck He was not aware of anything like this in history. In the nineties, he added that the Supreme Court canceled two taxes on the land of export condition (Known cases IBM and US shoes). Jensen said that tax practitioners were surprised that the court took over: “If most of them did not care about constitutional restrictions, the court has not heard any export clause cases about 70 years ago.” Jensen said that ready -made meals were clear, “The export condition is important.”

Professor of Law Faculty of Colombia Eric Tali agreed with Jensen, and he informs luck While the federal government has advanced before Subsidies For export, he does not realize other historical cases that impose taxes on the chosen exporters. Talley also cited the export paragraph as the usual foundations for finding such unconstitutional arrangements.

Instead of reducing the uniqueness of the arrangement, Treasury Secretary Scott Payette tended to. In a Bloomberg television interview, he said: “I think you know, at the present time, this is unique. But now that we have the model and the experimentation test, why don’t we expand it? I think we can see it in other industries over time.”

The arrangement surrendered a sharp reaction from business leaders, legal experts and commercial analysts. Julia Powles, Director of the University of California Institute in Los Angeles for Technology, Law and Politics, He said Los Angeles Times“It connects the fate of the manufacturer of chips in a very special way with this management, and it is very rare.” Experts have warned that if repeated, this template may be able to pressure other companies – not only technology giants – in similar arrangements with the government. Indeed, many unprecedented arrangements have been made between the Trump administration and the corporate sector, starting with “Golden sessionIn the United States, Steel has been negotiated as part of its acquisition by Nippon Steel in Japan to the federal government to discuss it Buy a stake in the INTEL chips.

The White House refused to comment on the potential deal. Amd did not respond to a request for comment.

While Washington often interfered with business – especially in times of crisis – the mechanism and size of the NVIDIA/AMD deal is almost unprecedented in modern history. It seems that the federal government has not previously demanded a percentage of corporate revenues of export sales as a pre -arid condition. Instead, the previous measures have taken a temporary nationalization form, organizational control, subsidies, or rescue – often during war or economic emergency. Examples include the seizure of coal mines (1946) and the steel mills (1952) during employment strikes, as well Two of the three adult Detroit and Most of the main banks in Wall Street. During the First World War, The Council of Military Industries has organized prices, production and business behavior for the war effort.

Congress has already created tax export and strategies-such as the Local International Sales Corporation and foreign sales laws), but these measures stimulate sales instead of transferring a fixed share of export revenues directly to the government. Legal scientists emphasize that such arrangements have undergone global trade rules and were later modified after international complaints.

The US ban on export taxes is due to the birth of the nation. Western sap books That some delegates Constitutional Convention In 1787, Alexander Hamilton in New York, it was preferable that the government be able to impose taxes on revenue sources such as imports and exports, but the “basic countries” in the southern United States were strongly opposed, given their agriculturalist, especially the importance of cotton at that stage.

However, many other countries currently have books export taxes, although they are generally imposed on all exporters, rather than once arrangements that remove barriers that prevent a specific market. Many countries with export taxes are developing countries that impose taxes on agricultural commodities or resources. In many cases (Uganda, Malaya, Sudan, Nigeria, Haiti, Thailand), export taxes reached 10 % to 40 % of the total government tax revenues in the 1960s and 1970s, according to what he said. International IMF staff paper.

Globally, most of the tax profits that were created within their borders (“the tax on the source” companies “), but a direct percentage of export sales as a prior condition to reach the market. The standard model is to impose taxes on the profits acquired locally, regardless of the export destination; Licensing and definition fees may be applied, but not usually as a fixed percentage of export revenues as an entry fee in advance.

Although the NVIDIA/AMD deal does not take the usual tax shape, Case Western’s Jensen. “I don’t see what it can be described as.” It is clear that it is not a “user fee”, which he said is the issue of the usual law in issues of export condition. For example, if goods or services are provided by the government in exchange for the charge, such as laying fees in a government port managed, this charge is not a tax or duty and the export condition is not related. “I do not see how the charges that will be imposed in cases can be distinguished in this way.”

It is known that the players “play” various legal treatments for subsidies and taxes, as added Colombia. He pointed to an example of a government that imposes a comprehensive unified tax on all producers, but then provides a subsidy for sellers who sell local markets. “The clear effect will be the same as a tax on exports, but indirectly.” He was not aware of this occurrence in the United States, but he cited many international examples, including Argentina, India, and even the European Union.

One of the famous examples of the international tax strategy is the Apple home in Ireland, along with many other multinationals that maintain its international profits abroad in the subsidiaries in order to avoid paying the American tax, which was applied at the time to all income all over the world when returning home. Tali said that many of this went after the 2018 tax reforms, which moved the United States away from corporate tax all over the world, with some exceptions.