Johnson backs digital tax despite Trump's ire

 

Britain's Prime Minister Boris Johnson arrives at the opening of the NATO summit in Watford, Britain December 4, 2019. REUTERS/Henry Nicholls

 

LONDON (Reuters) - British Prime Minister Boris Johnson said he would press ahead with new taxes on U.S internet giants like Facebook and Google, putting him at odds with U.S. President Trump who has threatened retaliation against France over its digital tax plans.

 

“On the digital services tax, I do think we need to look at the operation of the big digital companies and the huge revenues they have in this country and the amount of tax that they pay,” Johnson said on Tuesday, according to a BBC report.

 

“We need to sort that out. They need to make a fairer contribution.”

 

Johnson’s Conservative Party has committed to implementing a digital service tax on the revenue of companies such as Google, Facebook and Amazon in its blueprint for government if it wins this month’s national election.

 

Under the plan, tech companies that generate at least 500 million pounds a year in global revenue will pay a levy of 2% of the money they make from UK users from April 2020.

 

France’s digital service tax, which has been set at a rate of 3% of revenue derived from French users backdated to early 2019, has raised the ire of Trump.

 

The United States said on Monday said it could slap punitive duties of up to 100% on $2.4 billion in imports from France of Champagne, handbags, cheese and other products.

 

“We’ve taxed wine and we have other taxes scheduled,” Trump told reporters, sitting alongside French President Emmanuel Macron in London ahead of a NATO summit, on Tuesday.

 

“We’d rather not do that, but that’s the way it would work. So it’s either going to work out, or we’ll work out some mutually beneficial tax.”

 

-- © Copyright Reuters 2019-12-04

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Why does Boris Johnson hate America? He wants to impose a 2% tax. n his defense, though, France has imposed a 3% tax. So I guess he only hates America 2/3 as much as does France. 

Edited December 5, 20196 yr by bristolboy

A company delivers a product, therefore it should be taxed. Nothing strange about that.

Basic rate 20% big corporates a tentatively proposed 2% all part of the need to squash the poor???? 

First time I've ever sgreed with Johnson. 

Make these greedy companies pay their fair share of taxes.

Been getting away with it for far too long. 

What is it that these digital companies get for their tax?  You live in France or the UK then you get roads, jails, cops, NHS, etc...  If you just use the electricity (pay for the wires yourself) then what is it you are getting  for your tax? Don't even get to vote for a PM or premier. 

Besides, the playing field is leveled by leveling taxes so Trump can do his bit to even things out between the Nations.   

10 minutes ago, Jonnapat said:

First time I've ever sgreed with Johnson. 

Make these greedy companies pay their fair share of taxes.

Been getting away with it for far too long. 

Yes, I’m sure they’ll take it directly from the CEO’s compensation package.

6 hours ago, stevenl said:

A company delivers a product, therefore it should be taxed. Nothing strange about that.

 

Simple eh?

 

So perhaps you could nip over and take charge of the group working on a global answer to corporate taxation, the issue of tax havens such as Eire and Luxembourg, the widespread practice of dummy business HQ's set up as profit centers in these low tax havens and the unfair advantages some countries give to their home  companies in defiance of agreements?

 

I'm sure they'd benefit from your simple wisdom.

1 hour ago, Baerboxer said:

 

Simple eh?

 

So perhaps you could nip over and take charge of the group working on a global answer to corporate taxation, the issue of tax havens such as Eire and Luxembourg, the widespread practice of dummy business HQ's set up as profit centers in these low tax havens and the unfair advantages some countries give to their home  companies in defiance of agreements?

 

I'm sure they'd benefit from your simple wisdom.

You have anything on the topic, or only a swipe at another poster?

These evil corporations generally earn money providing goods and services. 
 

Taxing them just increases the “cost” to the consumer, making corporate taxes hideously regressive. 
 

 

3 hours ago, Baerboxer said:

 

Simple eh?

 

So perhaps you could nip over and take charge of the group working on a global answer to corporate taxation, the issue of tax havens such as Eire and Luxembourg, the widespread practice of dummy business HQ's set up as profit centers in these low tax havens and the unfair advantages some countries give to their home  companies in defiance of agreements?

 

I'm sure they'd benefit from your simple wisdom.

That's an income tax issue. This is about what is essentially a sales tax. Different and simpler.