Trump news: President lashes out at Macron as US express ‘concern’ over France’s tech plan | World | News


A US representative said: “The United States is very concerned that the digital services tax unfairly targets American companies.” France’s Parliament is likely to approve plans for the new tax on Thursday, the BBC reported. The tax is set to raise hundreds of millions of euros by targeting Google and Facebook.

The companies targeted have a 3 percent levy on revenue inside France, according to the BBC.

Digital companies which make more than 750 million euros, with 25 million made in France, will be subject to the tax.

President Macron’s tax is set to raise 400 million euros ($450m; £360m) just this year.

The tax could lead to trade penalties from Washington as President Trump’s probe is also likely to worsen tension between the US and Europe.

READ MORE: STAND UP TO TRUMP! French minister urges EU take on US over tax

The 301 probe was used on China last year resulting in the US slapping tariffs on the country, The Washington Post reported.

The investigation could spark other countries to tax tech giants following belief the US companies aren’t paying enough tax worldwide.

US Trade Representative Robert Lighthizer said: “The President has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce.”

Macron’s officials have yet to comment on the probe.

French Finance Minister Bruno Le Maire said told Le Parisien in April: “The fact that these companies pay less tax than a cheese producer in Quercy is a real problem.”

Jennifer McCloskey, vice president of policy at ITI, a US tech-industry association said in a statement: “France’s move to enact a unilateral, national digital tax opens the door to a fragmented, inefficient global tax system that would reduce business certainty and impede innovation, job creation, and economic growth worldwide.

“We recognise the challenges that arise as the global economy becomes increasingly digitised but proceeding unilaterally would complicate economic relationships around the world and lead to undesirable measures to address France’s action.”

Google has since defended its global tax payments and said it supports a new “comprehensive and multilateral agreement” on tax.

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