WASHINGTON - A US trade group representing major technology firms on Tuesday denounced an agreement on France's digital tax announced by Presidents Donald Trump and Emmanuel Macron that leaves the levy in place until a new international taxation plan takes effect.
"We should not support a compromise that would green-light discriminatory taxes against US tech companies for some vague promise of possible partial reimbursement years later." "Any agreement between France and the United States must encourage a multilateral approach and avoid the proliferation of unilateral proposals."France's levy of three percent of revenues of big tech firms which take in at least 750 million euros annually has been criticized in Washington for departing from precedent on taxing revenue instead of profits and for targeting a narrow group of companies.
The agreement appeared to head off a threat by Trump to retaliate with tariffs on French wine, although the US president offered no specifics on his commitment. "It is unclear how US companies would benefit from permitting France to flout its trade obligations."