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France Considers Raising Taxes on Internet Giants (reuters.com)
France's Finance Minister has drafted a new law to tax internet giants, reports Reuters:
A three percent tax on the French revenue of large internet companies could yield 500 million euros [$568 million U.S. dollars or £429 million] per year, French Finance Minister Bruno Le Maire said on Sunday. Le Maire told Le Parisien newspaper the tax is aimed at companies with worldwide digital revenue of at least 750 million and French revenue of more than 25 million euros.
He said the tax would target some 30 companies, mostly American, but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies. The paper listed Google, Amazon, Facebook and Apple (the four so-called "GAFA" companies) but also Uber, Airbnb, Booking and French online advertising specialist Criteo as targets. "A taxation system for the 21st century has to built on what has value today, and that is data," Le Maire said. He added it is also a matter of fiscal justice, as the digital giants pay some 14 percentage points less tax than European small-and-medium sized companies.
The draft law will be presented to the cabinet on Wednesday, and then presented to France's parliament, Reuters reports.
"The tax would also target the sales of personal data for advertising purposes."
He said the tax would target some 30 companies, mostly American, but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies. The paper listed Google, Amazon, Facebook and Apple (the four so-called "GAFA" companies) but also Uber, Airbnb, Booking and French online advertising specialist Criteo as targets. "A taxation system for the 21st century has to built on what has value today, and that is data," Le Maire said. He added it is also a matter of fiscal justice, as the digital giants pay some 14 percentage points less tax than European small-and-medium sized companies.
The draft law will be presented to the cabinet on Wednesday, and then presented to France's parliament, Reuters reports.
"The tax would also target the sales of personal data for advertising purposes."
"He added it is also a matter of fiscal justice, as the digital giants pay some 14 percentage points less tax than European small-and-medium sized companies."
I'm sure they won't just add that 3 % back to the costs of their services in France, nope that money will just magically appear.
Everything above is my opinion....YMMV
Why the sudden need for more tax?
What services suddenly need extra tax money?
The French government deficit is projected to be 3.4% of GDP -- (By comparison, the US is projected to be 4.7% in 2019)
Most countries recognize that having ever climbing deficits is a bad thing. They can either cut expenses, or raise taxes to make up for the shortfall. The French government is choosing the latter, aimed specifically at huge corporations that historically haven't been paying their fair share. Note that it's only targeting a percentage of their profits realized within France. If Apple, Google, Facebook and the others don't like it, they can always choose not to do business in France.
France is a nuclear weapons state of its own right -- I doubt it will have a problem defending itself against external attack.
Sure on my weekly trip to our HQ to Paris from Bordeaux (around 580km road distance), It takes 2 hours to get me at the center of Paris. "not dramatically fast compared to most other countries " you said ? Sure, let's see : Going from NYC to Pittsburgh that is around the same road distance of a Bordeaux-Paris, it will take you around 9 hours by train. Enjoy ! London to Glasgow, it's about 4 hours by train for around the same distance... Even with countries with fast trains you still get a major difference, Milano to Roma (573km) you will need around 3 hours ! 50% more .... sorry but I don't know in which planet (oops, country) you live in. If you wanted to bash TGV you could have gone for the comfort or the lack of connectivity on some east lines. But for the speed, the reliability or the price, no serriously get a clue.
Same thing about strike, lately train had more to suffer from impact of update of rail switches to full automatic that caused multiple black out at major paris station thant from any strikes. When there are major strikes, you know why trains are still ok in France ? Because, people will take the train to go to paris to have a huge demonstration ;-)
Nice French bashing and cliché combo attempt ;-)
The US wouldnt exist if it werent for the support of the French during your war of independence.
I think France has done more than enough for the US, you ungrateful prick.
The problem is not only in tax rates, but in the fact that tax laws have loopholes that allow profits to be shifted to countries where that profit is only lightly taxed. In it's simplest form a company will shift all of its IP to a tax haven, then charge all of its national subsidiaries a license fee for the use of that IP, in order to reduce their profits close to zero. Many, many companies do this.
If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
FWIW, the US was isolationist and largely pro-German during WWII until the Japanese attack on Pearl Harbor. Then we quickly changed our minds. France had little or nothing to do with our participation. Even Britain was a secondary consideration, and much of the populace was anti-British. (Much, not only those with Irish ancestors.) This was apparently because the Germans were openly racist, and the British much less so.
That said, there were prominent pro-British spokesmen (including FDR) as well as pro-Nazi (including Charles Lindberg). So isolationism was dominant. Until it wasn't practical any more.
I think we've pushed this "anyone can grow up to be president" thing too far.