The US investigates France’s controversial tax on Big Tech

The US plans to investigate France’s controversial new tax plan for Big Tech.


July 12, 2019

France passed a polarizing tax on “digital services” that will hit American tech’s major players like Google, Facebook, and Amazon. Now, the US says it plans to investigate

Under the bill, tech companies with more than $844m in global annual revenue and more than $28m in French revenue will be required to pay a 3% tax on total annual revenue generated by providing services to French users.

In a statement on Wednesday, the office of the US Trade Representative said the tax suggests unfair treatment of US-based tech companies.

Why tax Big Tech?

France argues these firms have long benefited from global tax loopholes that aggressively minimize their tax bill in countries where they aren’t headquartered.

According to the European Commission, internet companies typically pay less than half the tax of traditional businesses. 

Now, the country of fine wine and cheese believes that, oui, it’s time to pay the piper. 

The American red and white is feeling pretty blue about it

American business groups quickly fired back at the proposal — because, unfortunately, with sadness comes anger.

The US Chamber of Commerce says the plan “would harm American businesses and workers.”

But with anger comes vengeance, and there’s nothing more dangerous than a vengeful trade-hoarder. Now, many worry the US inquiry could lead to retaliatory tariffs.

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