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France Proposes an Internet Tax
By ERIC PFANNER
Published: January 20, 2013
PARIS — France, seeking fresh ways to raise funds and frustrated that American technology companies that dominate its digital economy are largely beyond the reach of French fiscal authorities, has proposed a new levy: an Internet tax on the collection of personal data.
The idea surfaced Friday in a report commissioned by President François Hollande, which described various measures his government was taking to address what the French see as tax avoidance by Internet companies like Google, Amazon and Facebook.
Google generates more than $30 billion a year in advertising revenue, including an estimated €1.5 billion, or $2 billion, in France. Yet, like other American Internet companies, it pays almost no taxes in France. That state of affairs upsets France’s policy makers, as public finances have been stretched thin and French Internet companies struggle to gain traction.
But getting Google and other U.S. technology companies to pay more corporate taxes on their profits in France could take a long time, the report acknowledges, because this will require international cooperation.
http://www.nytimes.com/2013/01/21/business/global/21iht-datatax21.html?_r=0
Well don't be surprised to see some of the Democrats start talking about doing the same thing here. France is thinking they can do this over what they call Data Collection.
By ERIC PFANNER
Published: January 20, 2013
PARIS — France, seeking fresh ways to raise funds and frustrated that American technology companies that dominate its digital economy are largely beyond the reach of French fiscal authorities, has proposed a new levy: an Internet tax on the collection of personal data.
The idea surfaced Friday in a report commissioned by President François Hollande, which described various measures his government was taking to address what the French see as tax avoidance by Internet companies like Google, Amazon and Facebook.
Google generates more than $30 billion a year in advertising revenue, including an estimated €1.5 billion, or $2 billion, in France. Yet, like other American Internet companies, it pays almost no taxes in France. That state of affairs upsets France’s policy makers, as public finances have been stretched thin and French Internet companies struggle to gain traction.
But getting Google and other U.S. technology companies to pay more corporate taxes on their profits in France could take a long time, the report acknowledges, because this will require international cooperation.
http://www.nytimes.com/2013/01/21/business/global/21iht-datatax21.html?_r=0
Well don't be surprised to see some of the Democrats start talking about doing the same thing here. France is thinking they can do this over what they call Data Collection.