Two hundred and fifty years after we told Britain they could not tax Americans without representation, several European nations have decided that “taxation without representation” is a good idea again. So far, they are getting away with $3 billion a year. President Trump cannot let this go on.
These foreign governments have designed a Digital Services Tax, a new breed of tax based on user participation. It is designed to hit American tech companies while discarding two centuries of taxation norms that form the basis of sovereignty.
They claim that because their citizens clicked, scrolled, searched, or in some way came in contact with a digital service, these are as much European companies as they are American. Making matters worse, the tax is imposed on revenue instead of profits.
It is a large and growing threat to all Americans.
A new report by Prof. Sinclair Davidson finds that American firms are paying nearly $3 billion annually to foreign governments due to these DSTs, and they are expected to pay $6 billion by 2030. Over the next 10 years, the cumulative cost will be $117 billion.
For instance, in the U.K., five foreign firms are responsible for 90 percent of their DST revenue. In Spain, 76 percent of firms hit by the DST are American, while only 3 percent are domestic. In Italy, 62 percent of firms hit by the DST are American, and only 7 percent are domestic.
MORE:
https://spectator.org/the-redcoats-are-back-with-a-new-tax/