Photo by Pierrick VAN-TROOST / Unsplash
American tech giants like Google, Amazon and Facebook might finally understand exactly how James Otis felt, when he uttered those words. Obviously the scenarios are not the same, but these companies are just as frustrated about taxes. France, a longtime frenemy of the United States recently slapped a digital tax on 30 tech giants. Most of which exist in the United States.
The U.S Government is not impressed. U.S Trade Rep, Robert Lighthizer, said in a statement, that an investigation will be conducted to determine if this digital tax “is discriminatory or unreasonable and burdens or restricts united states commerce.” According to this article on NBC News, this tax could cause a tit for tat situation. If the digital tax is implemented, the United States will start imposing new tariffs or trade restrictions on French goods.
Tax Breakdown
The bill itself requires tech companies to pay a 3 percent tax on all French sales. The tax will also be applied retroactively, to include sales from the beginning of 2019. Despite investigation threats from the United States, France remains largely unphased. In fact, French Finance Minister, Bruno Le Maire, had this to say “France is sovereign, and France decides its own rules. And this will continue to be the case.” Both France and the U.S seem to be standing their ground in this fight.
Amazon also agrees that the tax is discriminatory. In their statement, Amazon applauded the Trump Administration for taking a stand against France. By threatening an investigation, Trump signaled to the world that the United States will not adhere to taxes that only target American businesses.
Your Thoughts?
Sound off below, do you think the U.S is being unfairly targeted? Is it just a coincidence since the large majority of tech giants are American?
How do you think this will affect consumers both American and French alike?
