Armstrong Economics Blog/France
Re-Posted Sep 15, 2017 by Martin Armstrong
The hunt for taxes in France and Germany is in full swing. Merkel and Macrone are looking for endless new sources of tax revenues. They are moving directly into the position of destroying their economies because their thirst for more and more taxes never ends. No matter how much they collect, they never have enough. The latest scheme is now to tax gross turnover of internet companies such as Google and Amazon – not profits. The French want a 5% tax on everything in Europe. They already get a 20% VAT which is a complex consumption tax to keep countless government employees in a job with every layer of business taxesd having to file claims constantly.
The French tried to tax Google advertising. They lost that case because the revenue was being generated in Ireland, not France. Nevertheless, the French are telling everyone this is the windfall they desperately need and it will produce more taxes than anything else. Effectively, a turnover tax of 5% on gross revenues on top of a 20% VAT, will only come out of the pocket of European consumers. There is NEVER any discussion about reducing government size. It is always bigger and bigger as if there is no end in sight to potential tax revenues.