Washington, July 27 US President Donald Trump has denounced France for its recently passed digital services tax law, and threatened “a substantial reciprocal action.”
France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA,” Trump tweeted.
The French Senate passed the law two weeks ago, making France one of the first countries to impose a tax on digital giants. The tax was adopted by the National Assembly, the lower house of Parliament, earlier this month.
“We will announce a substantial reciprocal action on Macron’s foolishness shortly,” Trump continued, referring to French President Emmanuel Macron.
The White House, meanwhile, released a statement on the issue, saying that the US is “extremely disappointed” by France’s decision to adopt a digital services tax “at the expense of U.S. companies and workers.”
“France’s unilateral measure appears to target innovative U.S. technology firms that provide services in distinct sectors of the economy,” White House spokesman Judd Deere said in the statement.
France has pushed efforts within the EU and on the international stage to change rules that currently enable tech companies, such as Facebook and Google, to reduce their tax bills by shifting profits to low-tax countries like Ireland or Denmark.