European Angst On GAFA
|English: Google Logo officially released on May 2010 (Photo credit: Wikipedia)|
My first reaction (years ago) was Europeans are sore losers. Instead of innovating they are hammering. They are just jealous of Google.
Now I think differently. Instead of Silicon Valley sucking money in from all over the world like the British Empire stole gold from India, these Internet behemoths should pay taxes in each jurisdiction they generate revenues in.
There should be a global regime. So there is an upper limit. Maybe you should not have to pay more than 10% in sales taxes in total at all levels of government put together.
Google is cashing on the infrastructure built by these countries. And I don't mean just broadband. Google thrives on educated populations. And Google should give back as a matter of business decision.
Such negotiations have to be global. That might also push us towards a world government (which both Bill Gates and I think would be a good thing).
The simple formula is, every Internet company should track as to where a sale got generated, and they should pay sales taxes in those jurisdictions, up to a maximum 10%.