SALES, RENTALS & LAYAWAYS

PROTECTING EVERYTHING THAT HAS EVER BEEN OF VALUE TO YOU

Open 24/7/365

We Have A Life-Time Warranty /
Guarantee On All Products. (Includes Parts And Labor)

Trump Urges Microsoft To Pay “Key Money” To Treasury Using Illegal Real-Estate Practice

Microsoft Should Refuse Trump’s TikTok Payoff. Trump Urges Microsoft To Pay “Key Money” To Treasury Using Illegal Real-Estate Practice

Paying the U.S. government a cut of TikTok’s sale price would be a dangerous precedent that could blow up in corporate America’s face.

Countries have a lot of powers that companies don’t—even companies worth as much as a small country. But Microsoft’s potential shotgun marriage with TikTok might be a test of the limits of a government’s power over a commercial transaction.

President Trump on Monday openly proposed a financial reward for the coffers of the federal government if Microsoft buys all or part of the social-media company from China’s ByteDance Ltd.

Mr. Trump said he told Microsoft Chief Executive Satya Nadella that “a very substantial portion of that price is going to have to come into the Treasury of the United States, because we’re making it possible for this deal to happen.”

He is correct about one thing: The potential sale wouldn’t be on the table if not for U.S. pressure. Moreover, whatever TikTok’s U.S. operations are worth—its parent values the entire enterprise at around $50 billion—Microsoft is in an unusually strong negotiating position with an outright shutdown being the other alternative.

While the U.S. government has been compensated by private companies before, for financing or arranging bailouts, for instance, this would be unprecedented. It amounts to a finders’ fee—“key money” in Mr. Trump’s parlance, which is an often illegal real-estate practice. Whatever sum Microsoft agreed to pay ByteDance would be further reduced.

Perhaps the White House will quietly walk back the proposal. Mr. Trump has often confused the flow of money in matters of international politics. He frequently insists that the Chinese, rather than U.S. consumers, pay billions to the government as a result of tariffs, or that NATO allies pay fees directly for protection rather than having a target for defense spending as a share of their economy.

What is more, the sum would likely be immaterial to the federal budget—even a $5 billion fee would cover about seven hours of expenses this fiscal year.

If the proposal is serious, and deemed legal, it would set a dangerous precedent for the seizure of foreign businesses through regulatory fiat, and open the door for U.S. firms to suffer the same treatment. In countries such as Venezuela that often has recently been the case. Many business assets such as licenses to operate, mineral rights or physical facilities can be had for token compensation.

Landing the U.S. part of the wildly popular TikTok could be a major prize for Microsoft. But if the price includes an unseemly payout to the U.S. Treasury, corporate America has far more to lose than to gain by participating.

Trump Urges Microsoft To,Trump Urges Microsoft To,Trump Urges Microsoft To,Trump Urges Microsoft To,Trump Urges Microsoft To,

Related Articles:

Mail Delays Fuel Concern Trump Is Undercutting Postal System Ahead of Voting

Trump Campaign Pauses Ads As He Trails In The Polls And Searches

Juice The Stock Market And Destroy The Dollar!! (#GotBitcoin?)

The Fed Treats Investors Like ‘Foolish Children’ By Propping Up Stocks Despite ‘Dreadful Fundamentals,’ #GotBitcoin?

These Businesses Were Denied PPP Loans Through Their Banks So They Went To Fin-Tech Firms

US Printed More Money In One Month Than In Two Centuries (#GotBitcoin?)

Don’t Let The Stock Market Rally Mask Reality (#GotBitcoin?)

Trump To Pull Winning Lotto Ticket Out Of His Arse Before Congress Changes Election Date

US Economy Contracted At Record 32.9%; Jobless Claims Rise 1.43 Million (#GotBitcoin?)

Fed Maintains Stimulus Commitment As Economic Outlook Dims (#GotBitcoin?)

Dollar On Course For Worst Month In Almost A Decade (#GotBitcoin?)

The Lure of Fed. Money-Printing And Artificially-Low Interest Rates (#GotBitcoin?)

Biden, Obama Release Campaign Video Applauding Their Achievements

Small Businesses Brace For Prolonged Crisis, Short On Cash And Customers (#GotBitcoin?)

Ultimate Resource For Violations of The U.S. Constitution Including “Money” And Coronavirus

Trump Campaign Forced To Use Tele-Rallies As Coronavirus Cases Surge

Roger Stone Uses Racial Slur In Live Radio Interview With Black Host

The Fed Is Setting The Stage For Hyper-Inflation Of The Dollar (#GotBitcoin?)

The Next Phase Of The Retail Apocalypse: Stores Reborn As E-Commerce Warehouses

Famous Economist Mohamed El-Erian Warns Investors To Stay Away From Zombie Companies And Zombie Markets

Republicans Alarmed By Democratic Senate Hopefuls’ Fundraising Haul

American Airlines Plans To Furlough Up To 25,000 Workers This Fall (#GotBitcoin?)

Consumer Appetite For Cars, Homes Bolsters U.S. Economy

Banks Get Ready For Wave of Recession-Led Loan Defaults (#GotBitcoin?)

32% of U.S. Households Missed Their July Housing Payments

What You Need To Know About The New Small-Business Bankruptcy Laws

Police Wrestle With Surge In Crime In U.S. Cities Amid Defunding Efforts

Here’s An Investment That Perfectly Tracks The Economy

Fed, Treasury Disagreements Slowed Start of Main Street Lending Program

When A Texas Oil Boom Goes Busts

Trump Takes Cognitive Test And Can Identify A Rhino vs A Camel

Don’t Know How Much Stimulus Is Needed? Put It On Autopilot, Some Say

Colorado Police Chief Fires Three Officers Over Reenacted Chokehold Placed On Elijah Mcclain

Republicans Give Trump Labor Day Deadline To Turn Things Around. After That, He’s On His Own

Chapter 11 Business Bankruptcies Rose 26% In First Half of 2020

Chaotic Trump Administration Plus Russian Bounty Intelligence Equals Loss Of American Lives

Supreme Court Orders Restructuring of Consumer-Finance Watchdog

Reddit, Acting Against Hate Speech, Bans ‘The_Donald’ Subreddit

Class Action Lawsuit Alleges Visa Subsidiary Violated Privacy And Data Protections Of Venmo, Stripe, Square’s Cash App, Robinhood & More

Private Equity’s Trillion-Dollar Piggy Bank Holds Little For Struggling Companies (#GotBitcoin?)

TikTok Teens Overload Trump’s Online Store With Orders Only To Abandon Shopping Cart

Bill Gates Says Trump’s Lack Of Leadership Is Making Pandemic Picture ‘More Bleak Than I Would Have Expected’

Fed Stress Test Finds U.S. Banks Not Healthy Enough To Withstand “Few Quarters” Economic Downturn

Elizabeth Warren Was Right About Whacky Stockmarket Fundamentals (#GotBitcoin?)

Two Of The Latest High-Profile Trump Resignations

US Banks Have Seen A Record $2 Trillion Surge Of Deposits Since The Coronavirus Crisis Began

Trump Gets KPOP’d And Tic Toc’d As Teens Mobilized To Derail Trump’s Tulsa Rally

Our Facebook Page

Your Questions And Comments Are Greatly Appreciated.

Monty H. & Carolyn A.

Go back

Leave a Reply