Countries around the world—from France, Italy, Spain and the United Kingdom to Chile and Australia—are proposing Digital Services Taxes (DSTs) to tax a small percent of the domestic revenues of a select group of large, mostly U.S. internet companies. But as Joe Kennedy writes for The Hill, the logic behind these taxes is dubious at best.
The United States is right to counter DSTs around the world. But so far, the U.S. government has made only weak attempts to oppose the implementation of these taxes. However, it has an opportunity now to address France’s proposal. French Finance Minister Bruno Le Maire said France wants to reach a deal before the upcoming G7 meeting at the end of August. The United States needs to become more forceful in protecting America’s most innovative firms, and now is the time to push back.
