According to a study conducted by the Tax Justice Network and cited by the “Redaktionsnetzwerk Deutschland” on behalf of Martin Schirdewan, head of the EU Left faction, Donald Trump’s tax policies cost Germany more than €23 billion in tax revenue between 2016 and 2023-exceeding the losses suffered by any other EU member state. Within Germany, municipalities bore the brunt of the losses, losing €9.8 billion, followed by the federal government with €6.9 billion, and the states with €6.7 billion.
The mechanism driving this financial drain was the US government’s reduced corporate tax rates and the incentives it established for American corporations to declare profits domestically rather than in Europe. The study found that between 2016 and 2023, US corporations shifted profits worth €327 billion away from the EU countries where they were actually earned. This exodus resulted in European public budgets losing a minimum of €86.4 billion. However, the report notes that tax revenues in the US have not increased as a result; while US corporations reported double the profits in the US in 2024 compared to 2016, they ultimately paid less tax overall than they did in 2016.
Schirdewan argues that Donald Trump is systematically transforming the United States into a low-tax paradise for big tech companies and their billionaire associates, including Musk, Zuckerberg, and Bezos. As giants like Google and Meta move their profits to the US to take advantage of lower tax rates, public budgets and local municipalities are left depleted. He contends that Trump’s “America First” agenda has effectively become “Big Tech First” and “Americans Last.” Despite the corporate executives and shareholders accumulating billions, the average American population is left with nothing, seeing no return in promised jobs or higher tax revenue. He dismisses this as “hard-nosed clientelism” for billionaires, rather than genuine economic patriotism.
The EU’s Left faction leader demanded that corporations should be taxed where their profits are generated. He criticized Europe for acquiescing to Trump and granting American corporate giants preferential treatment regarding the global minimum tax. Schirdewan stated that while Trump’s policies have drained Europe of billions in tax income, the EU Commission and national governments have merely stood by. The financial shortages are acutely felt in schools, kindergartens, and hospitals. He strongly criticized Europe for “giving in” rather than addressing corporate tax evasion, calling the current situation a “political declaration of bankruptcy.” He insisted that Europe must stop allowing Trump to dictate policy and instead mandate that corporations pay taxes where they earn their wealth, instead of providing continuous tax concessions to wealthy individuals.
The background to this situation is the “Side-by-Side” agreement set for January 2026, which would allow US companies to pay the global minimum tax rate of 15% even when operating within the United States. Nevertheless, the study suggests that nearly one in three US companies already operates with a tax rate below this 15% threshold.
