European countries including France are making a push for massive tax increases on technology giants like Amazon, Facebook, and Google.
This week, legislators in France approved a bill that will ensure that Internet technology companies like Amazon, Facebook, and Google cannot operate in Europe without paying taxes. Until now, Silicon Valley companies have avoided paying taxes in companies like France by exploiting a loophole that allowed them to reroute their sales through countries with lower corporate tax rates like Ireland.
The bill includes a three percent tax on Internet technology companies that have global revenues of more than $847 million. French officials estimate that the tax will bring in $566 million in its first year.
The bill, which was adopted by France’s National Assembly, now needs approval from the French Senate.
Lawmakers in the United Kingdom are considering a similar tax on Internet technology companies like Amazon, Facebook, and Google on all revenues that are generated by British citizens.
Boris Johnson, who is likely to be the next prime minister, expressed approval for the new tax. “It’s deeply unfair that high street businesses are paying tax through the nose … whereas the internet giants, the FAANGs — Facebook, Amazon, Netflix and Google — are paying virtually nothing,” Johnson said in a comment.