European Union Proposes Taxes on U.S. Tech Companies

Sep 11, 2017

The European Union is trying to force American tech companies to pay a European equalization tax of 26.22 percent. Companies such as Facebook, Google, and Apple could pay billions. Large international tech companies structure their corporate affairs in countries that have low corporate tax rates so as to reduce their tax liability. In 2011, “Apple’s Irish subsidiary . . . paid just $10 million in taxes on $22 billion in pre-tax earnings.” In July, Eurocrats created rules that force large multinational corporations to publish “country-by-country public reports of income and tax payments information to prevent the companies form arranging their affairs to declare most profits in foreign tax havens.” The German Green Party said, “Public country-by-country reporting will make it much harder for multinational corporations to shop around for the west possible tax rate, and help bring illegal activity to light.”