French Parliament Passes Tax Law on Tech Giants Amid US Investigation

French Parliament Passes Tax Law on Tech Giants Amid US Investigation

On Wednesday, the Trump administration announced an investigation into the tax under the provision used a year ago to probe China's technology policies, which led to tariffs on $250 billion worth of Chinese imports.

Finance Minister Bruno Le Maire has said France isn't the only country advancing a tax on digital companies and that using the threat of "blackmail" to stop them is pointless. Under Section 301 of the Trade Act of 1974, the president has authority to impose tariffs or take other restrictive measures if it's determined that a foreign country's trading rules are damaging to USA businesses. Prior investigations have covered Chinese trade practices and European Union subsidies on large commercial aircraft.

The French Finance Ministry has estimated that the tax would raise about 500 million euros annually at first - but predicted that collections would rise "quickly".

The new tax would apply to the French revenues of approximately 30 major companies, most of which are US-based.

"France's move to enact a unilateral, national digital tax opens the door to a fragmented, inefficient global tax system that would reduce business certainty and impede innovation, job creation, and economic growth worldwide", Ms Jennifer McCloskey, vice president of policy at ITI, a USA tech-industry association, said in a statement this week.

"The United States would not need to pursue this path if other countries would abandon these unilateral actions and focus their energies on the multilateral process that is underway", the statement added.

The ASIC French lobby representing firms like Facebook, Google, Amazon, Twitter and Airbnb warned of a wider impact. Any digital company with revenue of more than €750 million ($850 million) - of which at least €25 million is generated in France - would be subject to the levy.

Bob Atkinson, president of the Information Technology and Innovation Foundation, issued a statement welcoming Lighthizer's investigation.

Senators Chuck Grassley and Ron Wyden, the top Republican and Democrat on the Senate Finance Committee, sent a letter to Treasury Secretary Steven Mnuchin last month asking him to bolster efforts to convince France to back off from its digital tax.

Lighthizer said the United States "will continue its efforts with other countries at the OECD to reach a multilateral agreement to address the challenges to the worldwide tax system posed by an increasingly digitized global economy".

In a joint statement, Republican Chuck Grassley of Iowa, who is committee chairman, and Democrat Ron Wyden of OR said: "The digital services tax that France and other European countries are pursuing is clearly protectionist and unfairly targets American companies in a way that will cost United States jobs and harm American workers".

Bloomberg Tax reported the investigation earlier, citing two people familiar with the matter.

Related News:



Most liked

Japan says space probe landed on asteroid to get soil sample
Project manager Yuichi Tsuda has described the mission as "a space science exploration that is unprecedented for humankind". Japan's space agency has announced its space probe Hayabusa2 has successfully landed on the asteroid Ryugu.

Spain court rules 43-year-old man is son of Julio Iglesias
But Osuna had argued a new trial was justified as they had "DNA evidence" brought from the United States by a detective. He has often presented himself as an unapologetic flirt with "an obsession for sex". "I don't even know myself".

Prime to show World Cup final
Their opponents in this semi-final have been consistently better in this World Cup and beat England comprehensively two weeks ago. The Black Caps will be the underdogs regardless of which side they face having lost to both England and Australia in group play.

New Zealand decision to bat based on research: Jacques Kallis
Kohli's side went down to by 18 runs at Old Trafford after the last four tie was played over two days due rain in Manchester . On Wednesday, Jadeja blistering knock kept India's hopes alive till the 48th over.

Arsenal appoint former midfielder Edu as technical director
Edu will be responsible for coordinating the first-team coaching group, the academy and scouting and recruitment. Edu leaves his role as general coordinator to Brazil on a high after they were crowned Copa America champions.

An Asteroid Was Found By The Astronomers That Loves The Sun
The newfound space rock, measuring a kilometer wide, circles the sun once every 151 days. That asteroid also turned out to orbit the sun outside of the solar system's plane.

'Willy Wonka' actress Denise Nickerson dies at 62: family
In Willy Wonka & the Chocolate Factory Nickerson played one of the spoiled children who wins a tour of the chocolate factory. In 2018 the Denver, Colorado resident had a pacemaker put in, but she had a hard reaction to it and became 'agitated'.

USDMXN: Peso Falls as Mexico’s Finance Minister Suddenly Resigns
The reason for its judgment, Ursua called differences with the current leadership of the country in matters of economic policy. Urzua also worked with Lopez Obrador from 2000 to 2003 when he was Mexico City mayor.

More than 20 reportedly killed in Papua New Guinea tribal violence
The next day gunmen entered Karida village in central Hela province and killed 18 people, shooting and hacking them to death. He said while the motive behind the killings was not known, he believed it could be in retaliation for an earlier incident.

INDIA vs New Zealand
He also thanked them for supporting them in large numbers, and went on to add that he had given it his all in the World Cup. Bites you back when you are expecting the least #CWC19 I learnt a great lesson today "Never Abuse The Game".

Many Fed officials saw stronger case for rate cut last month
Trump, who is counting on a strong economy for his re-election campaign, has called the Fed his biggest threat . The Fed minutes of the June policy meeting released on Wednesday as well echoed Powell's comments to Congress.

Turkey rejects European Union claims that drilling off Cyprus is illegitimate
A second vessel, the Yavuz drillship, has now sailed to an area off the Karpas peninsula on Cyprus' east coast. Cyprus was divided in 1974 after a Turkish invasion triggered by a Greek-inspired coup.

UK Seizure of Iran’s Oil Tanker Not to Go Unanswered: Top General
Rouhani, however, after meeting with Bonne said "Iran has fully left the path open for diplomacy and negotiation". Last year, Rouhani urged European leaders to work with Iran to counter the Trump administration's and U.S.

Miami Dolphins do not make any moves in supplemental draft
Thompson started 39 of a possible 39 games for WSU during his three seasons with the Cougars, all at the safety position. According to NFL Draft analyst Tony Pauline , Thompson interviewed and tested with the Green Bay Packers on Tuesday.

Daniel Sturridge reunited with stolen dog after social media appeal
English Premier League striker Daniel Sturridge received some good news Wednesday - someone found his dog. "I want my dog back". A video and pictures of the dog were tweeted on Wednesday, and Lucci has now been returned to Sturridge.