Trump Lashes Out Over New French Digital Services Tax: ‘American Wine Is Better’

Carlos Barria/Reuters

President Donald Trump is lashing out over a controversial new French tax slated to impact American tech companies — and he’s taking a shot at French wine in the process.

“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 wrote in a tweet vowing “substantial reciprocal action” and lambasting French President Emmanuel Macron’s “foolishness.”

“I’ve always said American wine is better than French wine!” he added.

The tax, signed into law by Macron on Thursday, will levy a 3% tax on revenue earned by tech giants operating in France. The “digital services” tax is aimed at the largest tech companies — those bringing in more than €750 million in revenue globally and more than €25 million in France, according to The Verge.

The Office of the United States Trade Representative (USTR) has expressed concerns the tax disproportionately impacts American companies.

“The services covered are ones where U.S. firms are global leaders,” the USTR said in a statement ahead of the bill’s passage in the French Senate. “The structure of the proposed new tax as well as statements by officials suggest that France is unfairly targeting the tax at certain U.S.-based technology companies.”

U.S. Trade Representative Robert Lighthizer formally launched an investigation into the tax ahead of its passage to “determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce.”

It’s unclear how exactly the administration plans to respond to the tax, but the president’s tweet certainly hits at targeting the famous French wine industry. Though the president has personally long-abstained from drinking, the Trump organization owns and operates the largest winery in Virginia.

What do you think?

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General Confusion
Member

“Know why Warren Buffett can brag about paying little tax? Because he gets his compensation in stock or deferred valuations.” I Ching

Both Warren Buffett and Bill Gates want to be taxed more. They both say that rich people like them don’t pay enough. So, AOC wasn’t wrong. Giving a $2 billion tax break to them was wrong.

Confusing, huh?

banstan
Member

To lisa bridge, “Until you can see past your own nose, you see nothing at all.”

Screwtape
Member

Again to Lisa Bridge,

So…what are YOU doing about it? Pressure your elected reps to close the loopholes, both individual and corporate. Better yet, institute a flat tax.

No deductions, no loopholes, no write-offs, no excuses. The government will take a percentage and have to adjust it’s spending. More importantly, those who get a vote will have “skin in the game”, how fair is that?. What’s more fair than payng into a system you get to vote on?

Those who say “that’s not fair” forget these things called sales taxes, gas taxes, etc.

General Confusion
Member

“I’ve always said American wine is better than French wine!” King Donald The Loser

I am confused. How would he know? HOW WOULD HE KNOW? He SAYS that he doesn’t drink alcohol because his brother was an alcoholic.

So – again- how would HE know? Liar.

Screwtape
Member

To Lisa Bridge, because IJR.

No taxes? What about payroll, Social Security, local, sales taxes, etc. ? You’ve obviously NEVER operated a business.

Know why Warren Buffett can brag about paying little tax? Because he gets his compensation in stock or deferred valuations.

Try this instead: push your reprehensibles, err, resentatives, err, reps to CLOSE the corporate tax loopholes. Not just for businesses, but for individuals. Start taxing the value of TOTAL COMPENSATION, not just income.

I know these are concepts complex for you to understand, but do something instead of whining.

Screwtape
Member

” I contend that a country which tries to tax itself into prosperity is like a man standing in a bucket and endeavouring to lift himself up by the handle.”–Winston Churchill Taxing businesses is a surefire way for governments to raise revenues. It’s also easier than seeking more efficient or economical means to an actually spend their tax revenues. Taking is easier than thinking. On the other hand, the big tech companies like Google can easily afford this if they want to operate in France or the EU. They just need to ensure their profits exceed their expenses. Yeah, I… Read more »

Screwtape
Member

Taxing businesses, more than individuals, is a surefire way for governments to raise revenues.

Of course, this says nothing about actually encouraging or helping businesses. They are simply cash cows for government mispractices, err, policies.

Screwtape
Member

I’m rarely thirsty for wine, but when I am I buy American. Stay thirsty for American wine my friends.

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