French President Emmanuel Macron is calling for a harmonized corporate taxation rate, a policy that if adopted could hurt the economic model of countries like Luxembourg and Ireland.
During a New Year press conference, Macron responded to a question by the Irish Times that Dublin has “little to fear” from his call for a tax on US tech companies operating in Europe. Macron’s proposal is that digital giants like Google and Facebook should be taxed on the basis of their revenue in each member state rather than the country in which they are based.
If implemented, the proposal for a single digital tax is expected to hit companies like Google, Amazon, and Facebook, but also public finances in a number of member states. Macron concedes that it is in the interest of “certain countries” to have an “abnormally low” level of corporate taxation, “but this goes against the collective interest.”