LONDON – French Finance Minister Bruno Le Maire on Monday welcomed the support of President Joe Biden’s government on a proposal for a global tax on the tech giants, saying a multilateral agreement could go into effect this spring.
The decision comes shortly after Biden’s appointment to Treasury Secretary Janet Yellen expresses her support for calls for technology companies to pay a larger share of their revenues in the countries where they operate.
Former President Donald Trump has vehemently opposed the proposed tax deals, saying they discriminate against American companies.
Speaking by videoconference at the Davos Agenda summit, Le Maire said: “I think it is very good news that the new Treasury secretary, Janet Yellen, just explained that she was open about the idea of thinking about new international taxation with two pillars: First, digital taxation and, of course, also minimal corporate taxation. “
“I think we are on the right track. There is a possibility of reaching an agreement on this new international tax system by the end of this spring 2021. And I can say that we will make every effort to pave the way for an agreement,” said Le Maire CNBC’s Geoff Cutmore.
Yellen supported calls for a new global tax on tax giants during a Senate confirmation hearing last week.
“This would allow us to receive a fair share of corporations, maintaining the competitiveness of our businesses and lessening the incentives that American companies now have for offshore activities,” said Yellen, the Agence France-Presse news agency reported on January 20.
French Economy and Finance Minister Bruno Le Maire speaks during a press conference in Paris on January 14, 2021.
THOMAS COEX | AFP | Getty Images
International taxation
Le Maire added: “The winners of the economic crisis are the digital giants. How to explain to some sectors that were hit hard by the crisis and that are paying (the) due level of taxes that the digital giants will not have to pay to pay the same amount of taxes? “
“This is unfair” and inefficient, he said.
When asked whether it would be prudent for France to seek to impose corporate taxes in the midst of the coronavirus pandemic, Le Maire replied: We must “make our best efforts to maintain the same level of investment, otherwise we are clearly at risk of open countries moving out of 21st century technology race. And we have to think about the type of economy we want to build. “
“We want to build a sustainable economy. We want to reduce inequalities between nations. And we also want to reduce inequalities in the international tax system.”
The World Economic Forum is being held online this year due to the coronavirus crisis. A physical congregation of global business heads, political thinkers and heads of state is scheduled to take place in Singapore in May.