The culture ministry of France said today that France should start taxing Internet advertising revenue at Google, Yahoo, Facebook Microsoft and AOL.
According to the Ministry, funds raised from the levy could raise up to 20 million euros ($29 million) a year.
The effort would aim to put an end to “the endless enrichment without payback,” Jacques Toubon, one of the authors of the report,
The recommended tax would be imposed on the ad revenue of companies, based on the online use of their services in France.
The 69-page report carries 22 proposals, such as increasing spending on digitizing books, creating Internet portals to aggregate online content, cutting the tax for online cultural sales, and setting up bodies to ensure artists are paid for works downloaded from the Web.
The cost of the various proposals would be about 50 million euros in the first year, the report said.
This is another example of what I warned against for the coming year.
Local governments trying to regulate and now get tax dollars from the Internet.
We all know the world is headed on to the Internet and governments around the world know this too.
Expect more actions by countries and local jurisdictions to impose special rules and taxes on Internet based businesses