THE GAFA TAX OR THE THREAT OF DONALD TRUMP

"FACING THE STUPIDITY OF MACRON"

America reacts with one voice. Republicans and Democrats are united against a measure of "racketeering" on the part of France, this is what we can hear from all sides in the ruling class and politics in the US! Taxation of GAFA by France: Trump do not go four ways. He threatens to replicate "the stupidity of Macron." US President Donald Trump has directly attacked his French counterpart Emmanuel Macron on Twitter, following his will to tax the GAFA, these American giants of tech (Google - Amazon - Facebook - Apple). He states that "if someone were to tax them, it would be their country of origin, that is to say the USA".

On the social network, Donald Trump also announces a "substantial reciprocal action against the stupidity of Macron", apparently by attacking French wines, in a thinly veiled threat: "I've always said that American wine is better than French, "he concludes in his tweet.

Donald J. Trump

@realDonaldTrump

France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!

The White House's chief economic advisor, Larry Kudlow, also spoke on the issue. He said Friday that the French tax on the digital giants (Gafa) was "a very, very big mistake." "We are not happy that France has gone ahead with this kind of tax on digital Said Mr. Kudlow.

He added that hearings would be held in August as part of the investigation launched by the Trade Representative (USTR) against this French initiative. President Donald Trump will then decide whether to "retaliate," Kudlow told CNBC.

The so-called Gafa tax, acronym for digital giants Google, Amazon, Facebook and Apple, creates a taxation of large companies in the sector not on earnings, often consolidated in countries with very low taxation like Ireland, but on turnover, pending harmonization of rules at the OECD level.

Robert Lighthizer the US representative for trade, had already announced Wednesday, July 10, 2019, the opening of an investigation against France in retaliation for the so-called GAFA tax (for Google, Apple, Facebook and Amazon), which must levy 3 % of revenues generated in France by some operators offering digital services

The United Kingdom had already measured how difficult it would be to negotiate any Donald Trump free trade agreement with the United States after Brexit.

Emmanuel Macron French President and his Minister of Economy and Finance, Bruno Le Maire, will experience the difficulty of attacking Washington alone.

Paris puts forward its sovereignty, but the GAFA tax in the French seems to be mainly a desperate maneuver to bring revenue into the coffers of a country that does not seem to understand that too much taxation kills taxation and that measures of economy must be part of the reflections that the French state must impose!

The French Minister of Economy, Bruno Le Maire, reacted Thursday, July 11, 2019 by saying that allied countries had to settle their "differences other than by threat" and added to the Senate that "France is a sovereign state, it decides sovereignty of its tax provisions, and will continue to make sovereign decisions on its tax decisions ".

The GAFA tax is structured as follows:

The companies concerned must achieve 750 million euros in sales, including 25 million euros in France.

The tax affects about thirty companies, including GAFA, but also European and Chinese companies and only one French, Criteo.

The law is retroactive and it can lead to double taxation is intolerable and contrary to any tax ethics in a democracy that respects !!

Unanimous senators as a whole (Republicans as Democrats) and members of the administration of our President Donald Trump urge France to go back with the introduction of this tax failing which the response of the United States and retaliation are going to be terrible and will hurt a lot !!!