The White House has launched a trade investigation into a new French law, which U.S. officials argue could discriminate against large, American technology companies.
This week, French lawmakers voted to impose a 3 percent tax on revenues from digital services that reach French users. It would apply to companies with total revenues of 750 million euros internationally, and with at least 25 million euros of revenues in France.
The law, which French President Emmanuel Macron is expected to sign within two weeks, could leave U.S. tech giants like Facebook, Google, and Amazon facing a hefty new tax bill.
On Wednesday, the U.S. Trade Representative Robert Lighthizer began an investigation into France over whether the law would constitute an unfair trading practice. The White House contends that the tax appears to target particular services in which the U.S. excels.
The European Union had hoped, but ultimately failed, to reach a tax plan similar to France’s that would apply to all 28 of its member states.
The European Commission, an agency that proposes legislation within the European confederation, estimates that digital companies pay half the effective tax rates of their non-technology-based counterparts.
The Commission had proposed a 3 percent tax rate on companies that profit from online placement of advertisements, sale of user data, and interactive, digital platforms.
Like with recent duties imposed against China, the U.S. could implement tariffs on French goods, should it find that the law unfairly targets American digital services companies.
Facebook ($FB), Google ($GOOGL), and Amazon ($AMZN) did not respond to a request for comment by the time of publication.
On National Taco Day, Cheddar News breaks down which eateries are currently offering big deals to mark the day.
Finding a job and securing an interview is a stressful process. Cheddar News explains how artificial intelligence can help you prepare for that interview.
Jurassic Park and Lego are partnering for a movie.
Visual effects workers at Disney voted to unionize.
Workers at Kaiser Permanente walked off the job, representing the largest healthcare strike in history. Michelle Castillo broke down what could happen next and what it could mean for patients.
Wednesday marks World Financial Planning Day. Rebecca Walser, president and founder of Walser Wealth Management, joined Cheddar News to discuss why financial planning is important, how it can be done and why it's best to start early.
Traveling can be expensive and if a situation arises, costs can add up. Nick Ewen, senior editor at The Points Guy, joined Cheddar News to explain what travel insurance can cover and when you should purchase it.
A prosecutor opened a criminal fraud trial Wednesday by telling jurors that FTX founder Sam Bankman-Fried was on top of the world a year ago, hobnobbing with people like football star Tom Brady and ex-President Bill Clinton, before his historic fraud was exposed, leaving customers and investors without at least $10 billion they thought was secure.
Staying on top of your personal spending shouldn't be as complicated as you think. Lazetta Braxton, a certified financial planner, joined Cheddar News to provide tips on how to track that spending, such as grouping expenses into different categories.
Uber is adding a new task to its list of services: mailing consumers' return packages.
