War on technology: Donald Trump threatens retaliation against France for his digital tax

The measure has been approved in France but it is supported by the G7 to be established throughout the European Union. He is known as GAFA rate, by Google, Apple, Facebook and Amazonand suggests that technology giants pay taxes in the countries where they make money, even if they are not physically present in those territories.

President of the United States, Donald Trump, criticized "stupidity" French President Emmanuel Macron for his tax proposal to these big global companies, and promised major retaliation that could affect French wine.

"France has just imposed a digital tax on our major US technology companies," Trump said on the rule adopted this month, which will affect Google, Apple, Facebook and Amazon.

"If someone makes them pay taxes, it must be their home country, the United States," he added. "We will be announcing shortly a substantial reciprocal action on Macron's stupidity.I have always said that American wine is better than French wine!"

Its chief economic adviser, Larry Kudlow, had already warned that the French tax imposed on large companies in the technology sector, called the GAFA tax, was a "very, very serious mistake".

"We are not happy that France has adopted this type of tax on the digital sector," he told the network. CNBC.

GAFA

L & # 39; call GAFA taxit taxes big companies in the sector, not on their profits, which are often grouped together in very low-tax countries, like Ireland, but on their turnover, in the expectation of Harmonization of standards at the level of the Organization Economic Cooperation and Development (OECD).

The agreement implies that there is a minimum level of taxes discourage the possibility of countries embarking on a competition to determine who is cutting taxes the most to attract business and investment from digital multinationals.

This issue had generated disagreements between the United States, where most of the major technology platforms are based, and France, which had approved a tax on these companies this month.

The tax is 3% of the generated business figure in the European country, digital companies with incomes above 750 million eurosat least 25 million euros are generated in France.