Macron And Trump Play Battle Of Taxes
It seems like a battle of taxes between Europe and US this time. It was revealed that Macron has put 3% digital tax on big tech companies such as Google, Amazon and Facebook.
The essential problem is that United States has levied a big bomb on France and France has reacted right away.
Reports reveal that France is content with the digital side of the economy, and that makes up a good size of the total world economy.
The new tax bomb on Trump on France (See: Macron), on Thursday, was a huge surprise for the man in question. In reaction to this, Bruno Le Maire sent a clear message to Trump, saying that they have to react to about 3% of their revenue.
France is making its over very decisions.
Similarly, France’s finance minister revealed that they decide their very own tax rules. However, on a similar hand, UK released its own draft proposal for increasing digital services tax by 2%.
If we put things straight, we can surely say that Europe is flying over towards Japan and Japan is at a standstill at the moment, for China to cover up the loss from the United States of America. Other than that, Brexit seems relatively and slightly low but current moves and status show that things are haywire.
Mayhem Or Chaos?
France has chosen to go for a uni lateral approach. They think that the digital tax will back fire. The cause, they say, will effect consumers and smaller businesses. However, the truth is that these mini sharks are playing with the biggest shark.
France has no other option to put taxes on its economy for the companies established there, whereas Apple has no other choice to break free from this momentum and choose to slip ahead.
Lastly, the laughing stock is the United States of America, because in satire, you idiot, trade is two way; if you are making economies suffer if you are stopping their food, comedy, fun, happiness, and tears, it sure as hell seems that America’s days are over.
However, the end result is that because of one party, there is so much cohesive and collective damage that everybody goes in a state of a loss.
Every cycle of give and take changes and then ultimately, the consumer suffers, for an increase in price will cause a decrease in demand. And even if some demand of it is fulfilled, there will be greater losses because the taxes will already be there.
It is a never ending chain, it seems, but only for the ones who are playing it. Ideally, leave the gains, leave it for collective goods and let people talk and come to you. That is a fair trade and an agreement.
Essentially, this is Trump at work and his hope is that everything is there and he has time to choose and decide. But no and though because if you are starting fire, you have to ignite it otherwise it will come to you and nobody will be able to hide it.
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