Hardly anything British Conservative wear in front of them, such as their commitment to free markets. Ex-Prime Minister David Cameron claimed that no one beat him in his “enthusiasm for capitalism”. His successor Theresa May praises the market economy is the greatest driver of human progress.
Even more remarkable is an announcement made by Mays, Chancellor of the exchequer Philip Hammond as part of comprehensive reform plans: in Accordance with the EU outlet Internet corporations such as Google, Facebook and Amazon are to pay a digital tax of two percent on your with UK users-earned money. Given the very small tax payments, the Internet giant was “only fair,” said Hammond.
The push is similar to a proposal by the EU Commission in March presented. While the British now make nails with heads, the rest of the Europeans from an agreement.
For a common digital expensive, especially France, drums in addition to the Austrian presidency of the Council. But other EU countries – including Ireland offers low tax rates, many of the digital companies. And also the Federal Finance Minister, Olaf Scholz (SPD) brakes for a long time – and argues instead for a global minimum tax rate. Hardly anything done ambitious plans, however, as reliable as Waiting for global agreement.
In the German Ministry of Finance is criticized, the proposed taxation of user data, breaking with the principle of taxation at the place of production to be raised. Thus, countries such as China could tax the future profits of the German automakers best. Because the European tax on U.S. corporations would meet, afraid of you in addition, new Trouble with the government of Donald Trump.
It is a matter of justice
The concerns are understandable and speak for it, to justify the new tax, if possible, waterproof. However, tax policy you can’t do alone, with the view to export markets. As both Chancellor of the exchequer Hammond and his French counterpart, Bruno Le Maire, stress, the digital tax fairness.
the Internet will be overturned entire industries. Google has revolutionized the advertising market, Amazon rolls out to the book shops and new parts of the retail trade. This change in the economy is very difficult to stop and use is often the consumer. The state, however, massive intake threaten as a result, losses.
Because many of the digital companies to reduce their tax payments to date, through clever Profit-shifting to a Minimum. So Apple paid in Ireland according to the EU Commission-tax year 2014 ridiculous 0.005 percent. And while every German kiosk must pay owners or cafe owners good tax, this on Online attracted to platforms such as Amazon Marketplace, yet often shamelessly behind.
If the Treasury does not respond to this fundamental change, he’ll be a danger on the duration of its existence. And he does not condone some of the large corporations at the expense of many smaller companies getting bigger and bigger. A would digital show expensive, it is also available for Google and co. boundaries. If the British car such a Signal, though, you are reliant after the Brexit particularly on investment and good trade relations, then the rest of the Europeans can do it, too.
