Reply to post: Re: Beware of False Profits

European nations told to sort out 'digital tax' on tech giants by end of year

grumpasaur

Re: Beware of False Profits

Corporation tax is internationally competitive because individual countries compete. If the EU decided to get its shit together, it would have the same economic clout as the US to say 'You can operate here or you can take the piss. Your choice.'

The EU however has a further decision: the FANGs are essentially a privatised US intelligence service. And the EU is a client continent of the US. If the EU cut of part of the revenue stream, the US might demand the EU pays for its own defence/protection racket in more direct ways.

When it comes to a united EU versus corporations, the EU wins. When it comes to the EU versus US quango-corporations, the US has a history of winning.

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