On Thursday, the French government decided to crank up taxes on globe-bestriding tech giants like Amazon, Apple, Google, and Facebook.
Here in America, the Trump administration responded by launching an investigation that could end in new tariffs against France. Seeing as most globe-bestriding tech giants are based in the U.S., the administration is upset that France’s new tax “unfairly targets American companies.”
The move was supported by Senators Chuck Grassley (R-Iowa) and Ron Wyden (D-Ore.), who put out a statement saying, “The digital services tax… will cost U.S. jobs and harm American workers.”
The problem is, coming from a president who campaigned on standing up for everyday workers while railing against global elites, this is an utterly backwards and contradictory response. The major players of Silicon Valley are at the forefront of a growing global problem, in which powerful corporations play national tax systems against each other to shelter their wealth and profits. And it’s a problem no country is going to be able to solve on its own.
Specifically, what France just passed is a 3 percent tax on the total domestic French sales of certain companies. To qualify for the tax, a company will need to make a …read more
Source:: The Week – Business