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Is there logic behind France’s rumored €1 Billion Google Tax?

rudebaguette.com

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Re: Is there logic behind France’s rumored €1 Billion Google Tax?

#51

Earlier quoted context omitted.

Find another article to comment on with your fucking french bashing. This article is about International Companies avoiding taxation in Europe, which is, believe it or not, a real problem in terms of finance and ethics. They make money out of EU citizens and get out of it with 0% taxes when EU business have to pay between 15% and 35% of their benefits in tax.

Thank you for your kind words. Were you a waiter from Paris by any change? I read the article is about France’s rumored €1 Billion Google Tax. Not a European Tax...

I thought this article was more about the fact that "some" non EU companies are making huge loads of money and evade tax.

I'm not a fan of this french government but I have to admit that it's not an heretic idea to say that a company should be taxed on its revenue.

Sorry for the tone but I'm so used to the comparison with Germany by people who seem to forget that the Euro is tailored for countries with an strong export oriented economy, like Germany.

Euro is more the core problem than France/Hollande or the fake North vs South Europe fight.

Re: Is there logic behind France’s rumored €1 Billion Google Tax?

#52
post #49

Earlier quoted context omitted.

Yes and no. The services that Google provides are already priced at the supply/demand meeting point. Tax is merely reducing profits that are already made. Google is not going to insist on making X% net profit and will not put up it's rates just because a tax rate changes. You can't pretend that Google dropped their rates in the UK by a few percent when the corporate tax rates dropped last year?

You neglect that a new supply-demand equilibrium will form, and since taxes effectively reduce supply, it will form at a higher price, with less demand. End result : less sales, customers paying more, and Google earning less. I do think you should consider that this will only raise prices for advertisers in France though. So it will be even easier for out-of-country advertisers to undercut France's local suppliers. T…

Sorry you've neglected to explain why a tax on profits is going to reduce supply.

You have totally ignored my point that changes in profit do not necessarily get passed onto the consumer. And my example was that Google pricing in the UK did not go 'down' when the tax rate went 'down'. So why would the price go 'up' when the tax rate goes 'up'.

Re: Is there logic behind France’s rumored €1 Billion Google Tax?

#53

The article is not replete on details on how this supposed tax would work. Personally, I'm in favour of taxing Internet companies, but I believe tackling such a complex issue affecting many countries on a national level is a mistake. Disclaimer: I'm French too.

We (European) need to have a unified taxation system for this kind of business. Nationalizing a tax on internet companies sounds like a lots of headache trying to figure out who own what to whom. Either this or a tax on internet (financial) transaction; something like 1-1,5% of the amount transferred.

Re: Is there logic behind France’s rumored €1 Billion Google Tax?

#54

Earlier quoted context omitted.

Thank you for your kind words. Were you a waiter from Paris by any change? I read the article is about France’s rumored €1 Billion Google Tax. Not a European Tax...

I thought this article was more about the fact that "some" non EU companies are making huge loads of money and evade tax. I'm not a fan of this french government but I have to admit that it's not an heretic idea to say that a company should be taxed on its revenue. Sorry for the tone but I'm so used to the comparison with Germany by people who seem to forget that the Euro is tailored for countries with an strong expo…

No worries. I agree with you this one-size-fits-all euro is hurting our country's abilities to rule over our own fate. We no longer control our own money… Be it French Francs or Dutch Gilders. This, combined with no representation makes for a lousy combination.

Re: Is there logic behind France’s rumored €1 Billion Google Tax?

#55
post #15
post #7

Earlier quoted context omitted.

> I believe tackling such a complex issue affecting many countries on a national level is a mistake. This sounds like the main problem here, to me: EU law makes it easy for a company to do business anywhere in EU and only pay taxes in its headquarters, on the assumption that it doesn't matter a lot where the company pays its taxes as long as it's inside the EU. But at the same time, EU law doesn't regulate corporate…

> so some countries can easily take advantage of that by lowering them (or completely removing them) so companies will be attracted there. God forbid anyone try and make a country a good place to do business. I'm for closing the various loopholes, because big companies should have to pay the same taxes that smaller companies do. But I am also very much in favor or countries trying to compete and improve in order to a…

Except that they are still doing business in the countries with high taxes; they just have their headquarters elsewhere to avoid paying the taxes.
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