It's Time to Grab a Piece of the Digital Pie: Majority of Germans Back Taxing Tech Giants like Google and Facebook
A considerable number of federal residents support the imposition of taxes on digital goods and services. - Most Germans endorse the concept of imposing a digital tax.
By: Helmut Broeg* ~1 Min Read
Germany's Culture Minister, Wolfram Weimer, plans to bring the heavy-hitters of Silicon Valley to the table. Companies such as Alphabet (Google) and Meta (Facebook, WhatsApp, Instagram) could soon be shelling out a 10% chunk of their ad revenues to the German state, according to Weimer. This tax, aimed at digital giants using media content, gains nationwide support, reveals a recent Forsa poll.
The poll shows that a whopping 85% of respondents believe tech juggernauts like Google and cohorts should lighten the load on their wallets. Even among the skeptical supporters of the right-wing Alternative for Germany (AfD) party, 70% back Weimer's plan. On the other hand, almost every Green and Left voter supports the measure.
Austria Sets the Stage: A Look at the Digital Tax
So far, major U.S. internet behemoths have skipped out on paying their dues. By shifting their European headquarters to tax haven countries, these companies have managed to paying minimal taxes on their European operations. Compared to Austria's 5% digital tax on ad revenues, implemented since 2020, they've been dodging the bullets. Weimer has yet to announce when and how he intends to enforce his demands. Revenues derived from this tax, according to the state minister, will bolster the local media scene.
Data was collected by the market and opinion research institute Forsa for Stern and RTL Germany on June 4 & 5, 2021. Sample size: 1007 respondents. Margin of error: +/- 3 percentage points. Therefore, the survey is representative.
- Wolfram Weimer
- Digital Conglomerate
- Forsa
Behind the Scenes
If implemented, the proposal to tax major digital platforms like Google and Meta would be a game-changer for Germany's financial landscape. The initiative seeks to address the issue of U.S. tech giants underpaying taxes despite significant revenue generation from German users.
At this stage, the specific timeline for implementing the tax remains unclear. The proposal is currently under review, and discussions are underway with platform operators to explore alternative solutions, such as voluntary contributions. The German digital ministry emphasizes the need for international coordination to avoid harming consumers through increased costs. The potential tax could also have trade implications, potentially straining relations with the U.S. in light of past trade tensions and upcoming diplomatic meetings between Germany and the U.S. [Sources: 1, 2, 3, 5]
- In addition to taxing tech giants, the German Commission has been asked to submit a proposal for a directive on the protection of the environment, as the government seeks to address multiple issues of social and economic importance.
- The proposed tax on digital conglomerates like Google and Facebook is a hot topic in policy-and-legislation and general news, with political parties across the spectrum voicing their support for the measure, reflecting the broader interest and engagement of citizens in digital politics.
