President Donald Trump promised on Friday to retaliate against France for adopting a pioneering tax on internet giants like Google, Amazon and Facebook.
President Donald Trump speaks to the media before departing from the White House on July 24, 2019 in Washington, DC.promised on Friday to retaliate against France for adopting a pioneering tax on internet giants like Google, Amazon and Facebook.
The digital tax primarily targets companies that use consumer data to sell online advertising. The tax is designed to stop multinationals from avoiding taxes by setting up headquarters in low-tax EU countries. Currently, the companies pay nearly no tax in countries where they have significant sales. The French law does not specifically target U.S. companies. It targets any digital company with yearly global sales worth more than 750 million euros and French revenue exceeding 25 million euros. The revenue threshold is supposed to allow more room for smaller companies to enter the market.
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