Editor’s Note: Jeff Ferry is chief economist at the Coalition for a Prosperous America, where Arpan Dahal serves as a research assistant. Bill Parks is a member of the coalition’s board and the founder of NRS Inc. in Moscow, Idaho. In this article, the authors argue that a sales factor apportionment system at France’s statutory rate would likely generate more than double the revenue of France’s new DST.
France’s new digital services tax aimed at internet companies has raised good questions about the best systemfor taxing corporate income in the internet age. Early this year France adopted a 3 percent levy on the total French revenue of approximately 30 large internet-based multinational businesses. The DST will mainly affect U.S.-headquartered businesses. The French government says the tax is necessary because internet companies are paying well below France’s statutory 34 percent corporate income tax.
[Jeff Ferry, Bill Parks, and Arpan Dahal | October 30, 2019 | Tax Notes]
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