France Proposes a Tax On Personal Information Collection
Dupple writes in with a story about a French proposal to tax companies that collect personal data online. "France, seeking fresh ways to raise funds and frustrated that American technology companies that dominate its digital economy are largely beyond the reach of French fiscal authorities, has proposed a new levy: an Internet tax on the collection of personal data. The idea surfaced Friday in a report commissioned by President François Hollande, which described various measures his government was taking to address what the French see as tax avoidance by Internet companies like Google, Amazon and Facebook. These companies gather vast reams of information about their users, harnessing it to tailor their services to individuals' interests or to direct customized advertising to them. So extensive is the collection of personal details, and so promising the business opportunities linked to it, that the report described data as the "raw material" of the digital economy."
If you tax something like that, it will be gone in less than 60 microseconds.
While I don't believe this is in any way viable to enforce, I think it would be hilarious to sit back and watch the aftermath.
"Electricity in the home? What good is this 'electricity'?"
"Senator, in 20 years, you'll be taxing it."
Remember, folks. The sordid, scurrilous worms in this are not the innovators.
(-1: Post disagrees with my already-settled worldview) is not a valid mod option.
Their biggest problem, of course, will be how to enforce the collection of this tax. If a user signs up for Facebook (etc), does that mean Facebook has to tell the French government about it so they can be billed correctly for the tax? Doesn't that mean someone can really screw Facebook up by signing up a bunch of bogus accounts registered in France, meaning Facebook has to foot the bigger tax bill? What about French citizens signing up from other countries but marking down their country of origin as France (these people wouldn't be French taxpayers any more, yet Facebook would presumably have to pay the tax on the collection of that users' data). It's not an easy one to resolve...
He's Jesus, for Christ's sake.
I'm all for taxing data collection of personal data. This would have a dampening effect on the industry, just like taxation has on many other unsavory (and good unfortunately) industries.
Google Rep: What exactly does France want?
France: We want: more... money!
French aide: Yeah! More money!
Facebook rep: More money from where?
France: Just more money! You know! France doesn't get enough money! Other countries have lots of money; we want, we want some of that money! Hu- how about- the Internet? The Internet makes lots of money! So give us some of that money!
French aide: Yeah! Give us Internet money!
When the companies decide to not collect data on French citizens, the French government will bitch them out for drying up a revenue stream.
Book keeping nightmare. Anytime anyone tells anyone in the company their name or any details it would have to be logged.
Also some information is required for tax record purposes. Are they going to tax things required for the tax system. Crazy system.
...it seems like any such scheme would cost far, far, far, more to administer than it could realistically obtain in revenue. And that's on both the taxpayer side and the government side. Can you imagine trying to audit this?
Those Frenchies sure love their taxes.
You must gather your party before venturing forth.
Instead of being "frustrated that American technology companies that dominate its digital economy are largely beyond the reach of French fiscal authorities" try kickstarter-type projects encouraging your own folks to create France-based sites that can compete and dominate your own digital economy. If they're good enough then citizens of other countries might come to _your_ sites and you can charge whatever the heck you want.
Bark less. Wag more.
What percentage of the data do they want?
Forget agreeing or even having an opinion. How exactly will they enforce this?
I this is supposed to be a collection of royalties due to tax loopholes why not fix the loopholes?
Why doesn't Hollande spearhead a movement to fix the loopholes instead of pursue specific companies for being clever?
If the previous system to tax corporations did not really work and their clever folk found ways to avoid paying taxes why is this new system such a better idea??
/facepalm
A 'singular oddity' is an event that cannot be explained and only happens when you are alone.
Governments shouldn't try to tax what they don't possess or control. It's like passing a tax on the consumption of oxygen or sunlight exposure. What people in other countries do with data is far beyond the control of the government of France.
The question is, are the French people going to receive such monies collected? Granted, these big social media giants are benefiting from collecting personal data from their users, but if the French government then capitalises on them collecting, isn't the French government then guilty of the same? ..And wouldn't the French government then be plausibly seen as just positioning themselves to also get a "piece of the pie" they're slicing? O.o
"A person's true worth is by what is in their heart." ~ Artsie_ladie ©
Focusing on Internet companies is stupid, all multi-nationals are avoiding paying appropriate taxes, close the loopholes that they're all using don't single out a particular industry.
I'm not fan of France, but let's be fair and blame the politician and her crew that proposed the law instead of the other 65 million french.
I kid, because I love, France...
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
Slightly offtopic, but I'm wondering. According to the European data protection law, every individual has the right to get a copy of all personal data a company holds about him or her. This was in the news some time ago regarding Facebook. Any user can order a CD with all information being stored about him or her. Does this law also apply to Google? And if so, has anybody yet attempted to retrieve this information?
If Pandora's box is destined to be opened, *I* want to be the one to open it.
Rational AND reasonable thought!?
you must be new here.
They can't tax data on the internet - because the internet extends beyond their jurisdiction.
They're the ones getting on the internet and directing data streams out of country...
I used to work in the US office of a French company. Our subsidiary was not well known in North America, but it was well known in Europe and some other places. I have a real love/hate relationship with the French. On one hand, there's a lot to like about the country and its culture. On the other hand, the bad stuff that makes you, as a foreigner, hate them is really bad. They are very difficult people to make meaningful friendships with. My experience is that they are really good actors and excel at pretending that you and your friendship is important to them, but in reality, not so much. Almost every American I know who moved over there to work in one of our 2 main offices in France got discouraged with the whole thing and eventually moved back pretty jaded about the experience. The French will look out for their countrymen above all others. They may not say it, but yes, they do think that everybody in the world who is not French is inferior to them. This is one of the reasons that they look to target foreign companies like this. In their heart of hearts, they just don't respect foreign companies.
I'm not claiming to be an expert in French politics, but they've had a lot of bad choices for leadership in recent years. Le Pen scared everybody by making it to the final round of the elections and basically everybody had to vote for Sarkozy. Sarkozy seems to be fairly smart, but he's got a huge ego and he kept making the news for things that had nothing to do with politics. Sarkozy pissed off just enough voters that coupled with Francois Hollande's campaign of "Let's tax the rich so everybody can retire early!", Hollande won. Hollande seems to be a bit out of touch with modern realities and he seems to think that he can simply tax the rich and they'll willingly pay and he can restore the old welfare state that made it impossible to fire French citizens and let people retire at age 60. A good number of French citizens are probably out of touch with reality too since they voted for him. So given that Hollande has an unrealistic goal that requires raising vast amounts of money and the French don't really respect foreigners anyway, going after foreign companies seems obvious. If I remember correctly, some years ago when Ebay got in trouble in France for not blocking listings of Nazi memorabilia, the original French government argument was that Ebay couldn't allow such items to be sold anywhere in the world before they backed down to only asking them to block such in France. So it's no surprise to me at all that France thinks they can tell Google, etc. to pay up and they'll do it.
What about the next country which then establishes the same tax laws as Ireland - it may not be in the EU? What then?
This will turn out to be a game of whack-a-mole.
http://www.freeimagehosting.net/newuploads/gdgdv.png
These fuzzy-thinking idiots. The only law we should have about privacy is to create ASTRONOMICAL penalties for publishing false information about anyone.
My grocer knows I have a weak spot for, say, pistachios, good chocolate and broccoli (separately, please.) This is fact. Their sales records illustrate it. Of course, it might be my wife who is the broccoli fiend, but they might be able to figure it out one way or the other. If there is a strong secondary market of people willing to pay for information about nut/desert/vegetable preferences, I say: go ahead, sell my info. It IS NOT A PRIVACY THING - it is at best an anonymity thing. If you wanted, you could pay a PI to follow me around, and watch my grocery habits. That's legal and always has been, regardless of whether it's creepy and boring. The only problem is if you publish as a fact that I prefer cauliflower over broccoli, then you should be made to suffer for your lie. Once I start being inundated by offers for premium-grade cauliflower (or, I suppose cheap/bulk cauliflower), you might also get in trouble with your info broker, since they paid for cauliflower info that you lied about. (The invisible hand can provide you with incentive to keep your vege-lies within some bounds - otherwise, info brokers will no longer pay you. But the law should give me an even bigger stick to bop you on the nose with, since I care a may great deal about my vege-reputation...)
Services, which are basically delivered electronically, can't be taxed.? Of course services can be taxed. Take a look at your phone bill, water bill, cable bill or any other "service" you get. Oh, and what about that "sales tax" for downloading an MP3 from Amazon (in some jurisdictions).
Technically, these companies don't make money "collecting personal information", that is actually an expense they occur. They only make money if they sell something, and that is already taxed. However, the gist of the bulk of the nickleaton post is corrrect - this is about broke government casting about for money to throw at ill-conceived spending they have obligated themselves to.
This issue is a bit more complicated than you think.
For the last two years or so, the French have been extremely hostile, and Google has been tolerating it. But I think it's only fair to remember that Google does have its limit, and it has pulled out of countries before. China, for example, no longer has it's own Google. France is going exactly the opposite of what it needs to be doing. Rather than doing everything it can to try to get more money out of companies like Google, what it needs to be doing is incentivizing the development of local technology companies, which it's not doing. This whole fetish on taxing American innovation is harming the local technology ecosystem, and they're going to feel this one soon, when nobody in their right mind will want to do business in France.
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Not true, in the USA, you are taxed (among other things) on your "income", whether the source of that income is legal or not. If you fail to pay can go to jail if the IRS nails you for tax evasion, even if the criminal acts are not themselves prosecuted.
This is how a lot of organized crime is prosecuted - for the underlying money and tax crimes, not the drugs or activity that generated the money.
This issue is a bit more complicated than you think.
This is genius, provided of course, that at least some of the revenues are funneled into the enforcement of privacy.
No don't tax it! The People-Things will throw English tea into the river! Make it so that you need a stamp and then not make the stamp, the last people that tried that never had any backlash! It's a perfect idea!
Any mechanism sufficiently obtrusive enough to determine whether a personal information transaction has occurred will, almost certainly, violate European Union privacy laws that France is a signatory to.
They'll tax the heat.
Taxman
Winning.
deleting the extra space after periods so i can stay relevant, yeah.
Much more effective to impose a gross receipts tax on all advertising revenue.
[...] the report described data as the "raw material" of the digital economy.
... I always thought the raw material was bad grammar and kittens.
Somebody had to say it.
You all are saying that fabeook and co have no business in france and tehrefore cannot be taxed. WRONG. They sell their data on their user and advertising to french company. Therefore they have business in France. And will have to either pay or stop selling any data taken from french citizen to french firm. And the french firm WILL NOT BUY. they would make them liable to use illegal data, and you may not realize but the CNIL and other group would see that with a very bad eye. The french firm would have to literaly stop any business with google and facebook and whoever. Meaning google would literraly lose the french market. Would you lose a whole market out of principle to avoid to pay a tax smaller than the profit ? Maybe you would. But google and facebook have investor and stocks folk which would immedaitely kick them in the ass for forgoing benefit. Just sayin'.
As far as dumb political choices go, the American Supreme Court elected and rigged voting machines re-elected George W Bush.
FTFY
While I'm wholeheartedly against paying for information on myself, I do, however, believe that the country needs to make money somehow. In high school, when I lost my ID, I paid $20 for a new one. I lost it again and paid another $20. Every time I lose my library card, they added a dollar to the next time it would cost me. Does it bother me? No, not at all because I'm giving back into the system.
So, when information becomes free, who gets to eat? You take money away from your country which pays for the farms for the food, you take money away from people who have made things like video games and music. Eventually, it comes back to bite us in the ass because the Circle of Economy somehow became a line with no end, heading downwards ever so slowly. So, maybe it's time we start closing these circles, possibly fixing the economy in several places.
France, just make the taxes reasonable and I'm sure it'd work out fine.
Seems like they fell bass-ackwards into it, blind squirrel finding a nut with the wrong motive, but the answer itself is close to the theoretical ideal. Centralized silos of personal information are profitable and have a negative externality(*). Economic theory has an answer for that; taxation. You internalize the externality, the transactions become more efficient, and the system becomes more productive. I'm not saying they know what they're doing, but it is the textbook answer to maximizing the productivity of a system that includes externalities.
* There are others, but here is one quick example of the external cost: The network effect causes the value of social internet services (including social data mining) to increase faster than linear WRT quantity, making such services naturally anti-competitive.
Stop-Prism.org: Opt Out of Surveillance
I am french so as an arrogant son of a ... I know, it's in my genes.
The tax is to compensate on the lack of tax income on assault weapons and guns in general.
Come on people get real.
If facebook decided your data is worth so much, why not make some money from it (since they do after all)?
If Google can charge based on click (even when the mouse is in France), why not make money from it (the mouse is already taxed)?
Double Irish arrangement anyone?
That's the issue here.
Margaret Thatcher said it best, "Socialism has a problem, eventually you run out of other people's money to spend." The French are obviously desperate to tax everything the walks, flys, swims or crawls. I think it's laughable, because they are essentially doubling-down on a deeply flawed (and nearly bankrupt) system of laws and regulations.
Vive le liberte
No they don't. Poverty isn't caused by a lack of money. Money is only representative of value. The richest 100 probably don't consume enough rice to feed the worlds starving (I certainly hope not, anyway). And even if they did, there is little reason to believe taking it from them would mean being able to give it to the poor.
If you were to take all the money from the richest 100, and give it to the poor, or spend it on the poor, or whatever, all you would get is rampant inflation.
ROFL... that would be a race to see. It was Le Pen - Chirac.
If you took all the wealth of the world, it wouldn't pay the U.S. debt.
Let's tax bad service too.
Just imagine, ISPs being billed for tax every time they fail to answer a call to tech support within a reasonable time. Or M$ being billed for their bugs.
We would either clear the national debt, or get the service we were promised. What's not to like?
By the end of Hollande's first presidential mandate France shall have lost its status of "world's 5th biggest power in the world" ("5e plus grande puissance du monde) to Brazil, which shall have a bigger GDP.
If Hollande is re-elected for another five years, France may be out of the G8! (that is losing three more spots in terms of GDP)
These numbers are very concerning. That is socialism for you. That is what socialism does to a country: when 56% of your GDP comes from the state, hardly anything good comes out of it.
People don't want to work there anymore: why work? Private companies are so taxed that they can't offer much more than the minimum legal wage. So why word when unemployment state benefits are nearly equal to the minimum wages?
And why try to create anything there? You're taxed like crazy and should you succeed you'd be regarded as a "traitor" and seen as "evil" for driving in a nice car, having a bigger house than your neighbours, etc.
It's really a pathetic mindset that socialist mindset.
So what's going on now? Well, what Tatcher noticed: "The problem of socialism is that at one point you run out of other people's money".
There's no more money and investors and entrepreneurs are demotivated. Some are even leaving the country to go create wealth in places where they'll be rewarded and highly regarded for doing so.
President Hollande said himself that he "hates the rich". And of course he hates Google. He hates everything that is seen as a form of power that is not socialist-state power.
And he badly wants to keep the nanny state alive so I'll do anything he can to hide the fact that the emperor has no clothes.
The country is going to be bankrupt soon if he keeps on heading in this full-socialist direction. So he tries to find money wherever he can and tries to distract its public opinion from the fact that bankruptcy is looming.
Which better target than the "evil american private companies"?
It's sad. And it's sader that there are so many socialo-commies on /.
That's very insightful. But what is a "privacy thing" to you, then? Are you saying there's no such thing as a right to or expectation of privacy?
Just because the U.S. is a republic does not mean it is not a democracy. Democracy/republic are not mutually exclusive.
Facebook or Google deliver services to France people. The raw material is the data of a french. Irrespective of where their servers are, France has a right to collect tax on their digital raw material. If an Antarctic person access the Facebook, the digital information collected by Facebook can be purged by Facebook, if the company has no intention on serving the population of Antarctica & paying Antarctica's tax. BY the way Japan is taking iron ore from other countries & manufacturing cars & selling it to USA. But it is paying for the raw material.
OK, France is not perfect. I can tell, I'm French.
But this problem is not a French only problem. It's a problem of tax avoidance.
Few years ago, Sarkozy said "Tax heavens don't exist anymore". Seriously !?!?
So, why are Google, Amazon, etc, paying so little taxes ? In France only ?
Do you think they are paying these taxes in your magnificent United States of America ?
No, they're just paying a little as they can _everywhere_.
Totof
Besides, increasing taxes has never been a road to success. Soviet union tried 100% and see where they are now. Yes, they aren't.