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France Will Tax Google, Apple, Facebook, and Amazon In New Year (qz.com)
An anonymous reader quotes a report from Quartz: France won't wait on the rest of the European Union to start taxing big tech. French finance minister Bruno Le Maire says the country will move ahead with a new tax on Google, Apple, Facebook, and Amazon starting Jan. 1, 2019. The tax is expected to raise $570 million in 2019. France and Germany had originally pushed for an EU-wide 3% tax on big tech firms' online revenues, in part to prevent companies like Apple from sheltering their profits in countries with the lowest tax rates. The deal, which required the support of all 28 EU states, appeared to crumble earlier this month, with opposition from countries including Ireland, home to the European headquarters of Google and Apple.
France and Germany attempted to salvage the deal by scaling it back to a 3% tax on ad sales from tech giants. That would effectively limit the tax to Google and Facebook, excluding companies like Airbnb and Spotify that might have been harder hit under the initial proposal. In the meantime, France is moving ahead with its own tax on Google, Apple, Facebook, and Amazon, which are collectively known in the region as GAFA. "The tax will be introduced whatever happens on 1 January and it will be for the whole of 2019 for an amount that we estimate at [$570 million]," Le Maire said at a press conference in Paris, the Guardian reported today (Dec. 17).
France and Germany attempted to salvage the deal by scaling it back to a 3% tax on ad sales from tech giants. That would effectively limit the tax to Google and Facebook, excluding companies like Airbnb and Spotify that might have been harder hit under the initial proposal. In the meantime, France is moving ahead with its own tax on Google, Apple, Facebook, and Amazon, which are collectively known in the region as GAFA. "The tax will be introduced whatever happens on 1 January and it will be for the whole of 2019 for an amount that we estimate at [$570 million]," Le Maire said at a press conference in Paris, the Guardian reported today (Dec. 17).
France seem to be literally broke, first carbon tax, that didn't work because people started yellow vest moment, well lets tax google and wholesale has money. Some serious desperation, Macrone and his grandma are marching to the guillotine
Google and the rest of these digital giants pay a 9.5 percent effective tax in the EU compared to 23.2 percent for traditional businesses. They can squeal all they want but a hike of 3% is not going to make me cry any rivers over Google's pain. I pay way more than a measly 9.5% of my income into the state's coffers. Counting indirect taxes, tolls and fees the state takes around half of my income in one form or another.
I think that is what they may want. Europe in general has been lagging behind the United States in terms of online services. Most of EU biggest tech companies are Industrial Technology (Siemens, Phillips, etc...) The Consumer Technology companies have a hard time competing against the Facebook, Amazon and Google. Primarily because they are so big, they can offer so many services so cheap that new competition will need boat loads of money to even be a threat. So making these products more expensive, it will open the door slightly enough to get their foot in.
We are in a time of a renewed sense of nationalism (Which I don't think is a good thing). But not just the United States, but every freakin country in the world seems to doubling down, protecting what they have, and preventing the "other" from coming in either physically, or with taxes and extra rules.
I expect this comes from the last Recession, because of the countries interconnection in trade that means stupid stuff done in America or China which you as a citizen has no control over, will affect your lively hood, and your countries economy. Now this works both ways, when the other countries does something good, you will also get its benefit as well. But the world is kinda feeling the pain from the last recession, and trying to lock out those "others" out.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
Force tax-cheating companies to cut their "but it is leeeegal"-bullshit and compete on equal terms as local companies.
Longterm, make EU close the loopholes that only profits big companies.
Any company that don't pay tax will of course be more successful than a company that has to pay tax.
So making these products more expensive, it will open the door slightly enough to get their foot in.
So Trump proposes tariffs to do the same thing and it is the most irresponsible idiotic thing any leader has ever proposed.
A socialist does it because his groups of friends has so destroyed the French economy they are desperate to get more money, and NOW its a smart idea?
That what you can love about progressives. They don't care if the idea is good or not, it only matters who proposes it.
They are not taxing the US at all. These corporation make money in France and pay very little tax there. It's not fair, and this new tax is a good starting point. These corporations will be free to avoid France if they don't like the tax.
not only their web site is accessed from France, but they sell advertisements to corporations and individuals based in France