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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."
Not earning enough from the massive penalties (5-10x what Europe fines European companies, when they do go after them) that Europe charges the Internet Giants.
The real problem is that we are not taxing the Sales over the internet properly, combined with nations (such as Ireland) that does not charge corporate taxes. To be fair, I would rather that America moves to 0% tax if the company is here (and is doing the bulk of the work here), otherwise a simple 25% tax on them.
It is long past time for the west to worth together and come up with an honest and fair solution to all of this. A VAT or Sales tax is fine on internet sales, but ideally, we make them universal across the west.
I prefer the "u" in honour as it seems to be missing these days.
Feel free to leave. You will not be missed.
And the French have zillions of Muslims.
"The average reporter we talk to is 27 years old......They literally know nothing." - Ben Rhodes
What does the US have? Endless war, mass incarceration -- the money is used to do violence instead of helping fellow Americans.
Well then, perhaps we should withdraw the protection of the US military from France and it's people and make it clear to the world that the French are on their own and the US will no longer defend them. Would that suit you? You Europeans, and especially you French, endlessly criticize America for it's military power and the wars that we undertake to maintain Western civilization against the depredations of Iran, Syria, Russia and the transnational non-state terror organizations. Where would you be without the protection that we provide? Trump has already said that NATO has outlived its usefulness. You find American wars distasteful. Many Americans would be happy to cease paying for your national defense. Would you like that? You brag about your generous social spending while you freeload off of our defense spending. Maybe Trump is right. Maybe we should hand you the bill or withdraw our protection.