Earlier quoted context omitted.
Don't you think that a company might just raise their prices to pay for those taxes?
Which makes local businesses better able to compete. Win-win.
I'm not so sure a French citizen would see it that way.
France has approved a digital services tax despite threats of retaliation by US
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Re: France has approved a digital services tax despite threats of retaliation by US
#292Earlier quoted context omitted.
> Those large tech companies can make money in France because the french government provides all that is necessary for a free, fair and functioning market. How could Google make money in France if there was no french police force, education system, market regulation, court system, contract enforcement? Also, those large tech companies can sell to French customers because French customers have money to buy from them.…
Don't you think that a company might just raise their prices to pay for those taxes?
and the problem is?
A company might raise prices to pay for an increased dividend. Companies have threatened the very existence of the company, or made a loss to pay increasing dividend.
Re: France has approved a digital services tax despite threats of retaliation by US
#293Earlier quoted context omitted.
> Those large tech companies can make money in France because the french government provides all that is necessary for a free, fair and functioning market. How could Google make money in France if there was no french police force, education system, market regulation, court system, contract enforcement? Also, those large tech companies can sell to French customers because French customers have money to buy from them.…
Don't you think that a company might just raise their prices to pay for those taxes?
Companies raise prices based on demand curve, not cost.
Re: France has approved a digital services tax despite threats of retaliation by US
#294Earlier quoted context omitted.
>so any type of tax is justified? That's a straw man. You're leaping from "some type of tax is justified" which is quite a bit more reasonable than "any tax". And if you want to say it's a slippery slope or some such, well, ever single action if extrapolated to the extreme can be a viewed as such. If 3% is reasonable and then it's proposed to goes up and up, fight the increase, not the initial reasonable action. Of c…
All taxes are a slippery slope. Name one that has ever been repealed. Income tax in the U.S. started out as a modest 3% on only the highest incomes and look where that has ended up: full on wealth redistribution. We can argue whether that's a good thing or not, but not whether there's a slippery slope when it comes to implementing a new tax.
Tithe.
And even if I couldn't name a tax that was repealed, many are way lower than in the past.
Peasants would rebel because they'd be taxed to (literal!) death.
Re: France has approved a digital services tax despite threats of retaliation by US
#295I'd guess it's even more palatable for France if the US threatens. The combativeness from the US helps foreign leaders to look stronger by creating a nationalist confrontation. Is this tax functionally different from tariff?
Given that French companies are also affected, I fail to see how it could be construed as a tariff. The goal of tariffs is to penalize foreign corporations. That tax is directed at a sector. It will not help the few French actors in that sector become more competitive.
It will create a local market opportunity if FB, etc, pull out. See Austin vs. Uber - the absence of ride-shares launched local alternatives that quickly took that marketshare until the locality changed it's stance.
It will likely act much like a tariff as I doubt any of these megacorps will pull out.
Re: France has approved a digital services tax despite threats of retaliation by US
#296I never understood the logic behind taxing large internet businesses. The idea behind taxes is that you use some public resource and you pay for that service. You own a home in a neighborhood, you pay property tax that funds the schools. You drive a car, you pay gasoline tax that funds the streets. You hire workers locally, you pay the tax to pay back all the contributions public institutions made to adding the skill…
Amazon delivers stuff to my house. It uses all the local government run resources, like roads, to carry out that business.
Amazon does not deliver packages. A local delivery company in France does. They pay local taxes (corp, gas, etc) which are passed on to Amazon when Amazon pays for shipping.
Re: France has approved a digital services tax despite threats of retaliation by US
#297Re: France has approved a digital services tax despite threats of retaliation by US
#298Earlier quoted context omitted.
1. Satellites 2. You don't need French schools to learn how to Google things
Why would anyone advertise to french customers if there is no functioning french economy, and thus no money to be made there? How would french consumers pay for satellite access without a functioning economy?
The next installment of the Mad Max franchise will focus on a fearless Amazon courier driving around in the lawless postapocalyptic wasteland, delivering smart speakers and juice presses to scattered communities of ragtag survivors.