US tax policies cost Germany €23 billion, study finds

A study by the Tax Justice Network, commissioned by EU Left parliamentary group leader Martin Schirdewan, reports that Donald Trump’s tax policies cost Germany more than €23 billion in tax revenue between 2016 and 2023. This represents the highest loss among all EU member states.

In Germany, the revenue losses were distributed among municipalities (€9.8 billion), the federal government (€6.9 billion), and the states (€6.7 billion). The study attributes these losses to US corporate tax cuts and incentives that encouraged US companies to report profits in the United States rather than in the European countries where they were generated.

According to the findings, US corporations shifted €327 billion in profits out of EU states during this period, resulting in a total loss of at least €86.4 billion for European public budgets. While US corporations reported twice as much profit in the US in 2024 compared to 2016, the study notes they actually paid less in total taxes than in 2016.

Martin Schirdewan criticized the approach, stating that the US has become a low-tax haven for Big Tech and billionaires. He also criticized the EU Commission and the German government for what he perceives as special treatment for US companies regarding global minimum tax agreements.