Donald Trump has commissioned an investigation into France's tax on technology giants, including Google and Facebook.
A president's trade representative said US companies are being targeted unfairly & # 39; due to the sanctions, whereby companies such as Amazon and Apple pay a three percent tax on the income that is made in the country.
Yesterday, Trade Representative Robert Lighthizer said: "The United States is very concerned that the tax on digital services that is expected to pass through the French Senate tomorrow is wrongly directed against US companies."
Donald Trump has commissioned an investigation into France's tax on technology giants, including Google and Facebook
But Bruno Le Maire, Minister of Economic Affairs, rejected the US response and said that & # 39; threats & # 39; were not the way to resolve such disputes.
& # 39; Between allies, I think we can and should resolve our differences in ways other than threats, & he said to the French Senate prior to the vote.
& # 39; France is a sovereign state and it only decides on its tax mechanisms and it will continue to do so & # 39 ;, he said.
The new law is the first of its kind and could cause retaliation rates from the US.
The legislation – called the GAFA tax – an acronym for Google, Apple, Facebook, and Amazon – was passed by a simple hand step in the Senate Senate building after it had previously passed through the lower chamber of the National Assembly. Pictured: Emmanuel Macron
The goal is to close a tax gap that has ensured that internet heavyweights have paid almost nothing in countries where they make huge profits.
French lawmakers are willing to approve the bill that imposes a 3 percent tax on income within the country.
The legislation – called the GAFA tax – an acronym for Google, Apple, Facebook, and Amazon – was passed by a simple hand step in the Senate Senate building after it had previously passed through the lower chamber of the National Assembly.
The new tax would be applied retroactively from early 2019 and is expected to raise approximately € 400 million ($ 450 million) each year. It has increased tensions between the US and France. Pictured: Trump and Macron at the G20 summit last month
But the French movement drew an angry response from Trump even before the legislation was passed, with the president ordering an investigation that, according to the French Economy Minister, was unprecedented in the history of Franco-American relations.
The new tax would be applied retroactively from early 2019 and is expected to raise approximately € 400 million ($ 450 million) each year.
Regarding the power of social media this morning, Trump said: “A major issue today at the White House Social Media Summit will be the immense unfairness, bias, discrimination and oppression that is being exercised by certain companies.
& # 39; We won't let them get away much longer. The Fake News Media will also be there, but for a limited period of time .. & # 39;
Responding to the power of social media this morning, Trump said: “A big topic today at the White House Social Media Summit will be the immense unfairness, bias, discrimination, and oppression that some companies practice.
He continued in a series of tweets, & # 39; joke & # 39; that he may be president for another 14 years, a violation of the 22nd amendment.
& # 39; … The fake news is not as important or as powerful as social media. Since that day in November 2016 they have become enormously credible, that I went down the escalator with the person who would become your future First Lady. When I finally leave the office in six …
& # 39; …. year, or maybe 10 or 14 (just kidding), they will soon go bankrupt due to lack of credibility or approval from the public. That's why they'll be Endorsing to me at some point in any way. Can you imagine that you have Sleepy Joe Biden, or @ AlfredENeuman99, ..
& # 39; … or a very nervous and skinny version of Pocahontas (1000 / 24th), as your president, instead of what you have now, so handsome and smart, a really stable genius! I am sorry to say that even Social Media is driven out of the market together with, and finally, the Fake News Media! & # 39;
The French movement drew an angry response from Trump even before the legislation was passed, with the president ordering an investigation that the French economy minister said was unprecedented in the history of Franco-American relations
Le Maire said earlier that he was warned about the so-called Section 301 investigation during a & # 39; long conversation & # 39; with US Finance Minister Steven Mnuchin on Wednesday, saying it was the first time that such a step was taken in the history of Franco-American relations.
This type of investigation is the main tool that the Trump government has used in the trade war with China to justify rates against what the United States believes are unfair commercial practices.
The measure was initially adopted by the lower house on July 4.
Last month, the G20 top chefs who met in Japan agreed that there was an urgent need for a global system to tax internet giants such as Google and Facebook, but clashed about how to do it.
Last month, the G20 top chefs who met in Japan agreed that there was an urgent need to find a global system to tax internet giants such as Google and Facebook, but clashed about how to do it
However, they welcomed a series of proposed measures prepared by the Organization for Economic Cooperation and Development (OECD), a forum for advanced economies.
& # 39; We will redouble our efforts for a consensus-based solution with a final report by 2020, & # 39; they said in a statement.
Washington penetrates the G20 for an umbrella agreement on taxation.
Such a move is supported by Google, who believes that Silicon Valley tech giants would pay less tax in the US and more in other jurisdictions, contrary to years of practice of paying the most taxes in a company's home country .
The investigation in section 301, which is being conducted by the office of the US sales representative, has announced that it will hold hearings for several weeks to allow the public to comment on the French tax issue before issuing a final report.
The movement was welcomed by the Computer & Communications Industry Association, which said that French law would oblige US internet giants to convert a percentage of their income from the beginning of 2019 retroactively.
& # 39; This is a crucial step towards preventing protectionist taxes on world trade & # 39 ;, said CCIA official Matt Schruers in a statement calling on France to take the lead towards more ambitious global tax reforms, instead of discriminatory national tax measures that harm world trade. & # 39;
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