Slashdot Mirror
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."
There's an interesting change going on. Services, which are basically delivered electronically, can't be taxed. Similarly with lots of IP. Think about it. Who are you going to tax? The consumer, or the producer. Ah, the producer say government. There aren't many of them, so we can get them. Difficult going after the consumer, since they are the ones who vote. Ah, slight problem. We can't go after the producers, if they are overseas. After all, the places where the servers are want their tax cut. If we really went after them, the other countries would retaliate. Not only that, the producers would up sticks, and move their servers. For example, if you use AWS for your servers, you can move them in seconds. Who are you going to tax now? Not only can the server move, the company can move. They will move to lower tax, lower regulation. Same with all IP. So I see IP taxes falling to zero. Far better keeping the employment, rather than driving that offshore. So what are Facebook's assets in France. It's the payments from advertisers. Now under EU rules, there is freedom of movement of goods, services people, and capital. Tough for France, they can't get the taxes. So what's really going on. Basically western states are bankrupt. They have hidden their pensions debts off the books. France is bankrupt, and now its desperate for cash. Any cash, no matter what the damage. However the rich have hopped, over the border to Belgium and Switzerland. Bank of France reported that last month, French banks lost 44 bn EUR of deposits. So a run on France has started. In France the state has educated people they are entitled. Its a right. When that 'right' is infringed, there will be violence.