US launches inquiry into French plan to tax tech giants

Post by enraged_camel » Thu, Jul 11, 2019, 10:28 AM UTC

geocar wrote: post #28

jklepatch wrote: post #16

US has a trade deficit with France. So potentially there is more to loose for France in case of a trade war: https://www.census.gov/foreign-trade/balance/c4279.html And generally speaking the US has a trade deficit with Europe: https://ustr.gov/countries-regions/europe-middle-east/europe... My understanding of the economic system between the US and the world is that other countries support the US dollar by using it f…

Not sure I agree with the analysis, at least on France. France's top exports to the US are aircraft parts and beverages (wine). Since the US needs those parts to export the (assembled) planes, I think the aircraft lobby (e.g. Boeing) will press hard to prevent a tariff here because it'd raise rates across the board, so that leaves wine: My hunch is even a 100% tariff on wine is unlikely to dissuade anyone from purcha…

Post by zaarn » Thu, Jul 11, 2019, 10:28 AM UTC

nolok wrote: post #15

fyoving wrote: post #3

Shouldn't be a long inquiry, this tax is textbook discriminatory trade barrier. If you look at EU policy as france and germany protecting their perceived interests by targeting US tech companies it starts making sense, I think a rule of thumb there is: "if it hurts google it should be law".

> by targeting US tech companies It does not. In a preliminary evaluation, there are 26 companies that would match the criterias, 11 are not americans, 4 of them (that's 1/6th) are even french companies to begin with. • Vente de biens: Alibaba, Amazon, Apple, Ebay, Google, Groupon, Rakuten, Schibsted, Wish, Zalando. • Intermédiaire de services: Amadeus, Axel Springer, Booking, Expedia, Match.com, Randstad, Recruit, S…

Post by speeq » Thu, Jul 11, 2019, 10:30 AM UTC

csomar wrote: post #26

> Countries including France and the UK have accused firms of routing some profits through low-tax EU member states such as Ireland and Luxembourg. This seems to be the problem. The EU laws have allowed these companies to avoid taxes. Small countries just next to France (Luxembourg) are able to help these companies. But France will not go against these countries and instead try to handle things through taxes. I don't…

Post by realusername » Thu, Jul 11, 2019, 10:36 AM UTC

nolok wrote: post #24

fyoving wrote: post #21

Earlier quoted context omitted.

Even with recent tariffs, US tariffs are still generally low, it's hardly a poster child for "protectionism", the EU has other barriers in addition to tariffs and much of it is due to french protectionism. If you think that these "loopholes" should be closed then close them for all companies and countries, don't enact discriminatory laws and then act indignant about it.

The US strong protectionism is not through tariffs but through tax incentives, targeted investments hidden as national security contracts and things like "buy american" acts. Just because you dress it up doesn't change what it actually is.

Post by hef19898 » Thu, Jul 11, 2019, 10:42 AM UTC

jklepatch wrote: post #20

fyoving wrote: post #13

Earlier quoted context omitted.

That's adorable.

Just showing your patriotism does not add much value to this thread. If you want to have a meaningful contribution, you should use facts and logical reasoning.