German Citizens Back Digital Tax on Google, Facebook, and Co.
Most federal residents endorse the imposition of a digital tax - Most Germans support imposing taxes on digital services and companies.
By Helmut Broeg* ⏱ 1 Min Read
Culture and Education Minister Wolfram Weimer is preparing to take on some of the biggest digital conglomerates out there. Weimer aims to reap a slice of the deep pockets of digital behemoths like Alphabet (Google's parent company) and Meta (Facebook, WhatsApp, Instagram) in the future. His proposed solution? A 10% tax on their advertising revenues, and it's got the majority of German citizens backing him up.
According to a Forsa poll, a whopping 85% of Germans believe these giants should cough up more than they currently do. This tax proposal even enjoys substantial support among AfD supporters, with 70% on board, while almost all Green and Left party voters back Weimer's plan.
Looking to Austria for Inspiration
With U.S. internet titans evading taxation so far, they've cleverly moved their European headquarters to low-tax countries. But Austria, ever the trendsetter, has been charging a 5% tax on advertising revenues since 2020. Exactly when and how Weimer plans to roll out his proposals remains unclear, but he's promised that the revenues generated will boost the local media landscape.
Poll conducted by market and opinion research institute Forsa for Stern and RTL Germany on June 4 and 5, 2022. Sample size: 1007 respondents. Statistical margin of error: +/- 3 percentage points. The poll is representative.
Breaking Trade Ties?
Weimer's proposed tax could stir up some trouble in the U.S.-German trade relations, particularly since Chancellor Friedrich Merz is expected to chat with U.S. President Donald Trump soon. Trump hasn't been too pleased with foreign governments taxing U.S. companies, so this could lead to a diplomatic rift.
- Wolfram Weimer
- Digital Conglomerate
- Forsa
- Austria's Digital Tax Model
- Austria introduced a 5% digital tax on certain online services, potentially serving as a reference point for Germany's implementation. However, the specific impact of Austria's model on Germany's plan remains undefined.
In simpler terms, Weimer and the German Ministry of Culture and Education are keen on shaking down big digital companies like Google and Facebook, with most Germans in agreement. Expectations are high that such a digital tax could serve as a model for other European countries, but trade tensions with the U.S. are likely.
- Amidst the call for more revenue from digital conglomerates like Google and Facebook, the Commission has also been asked to submit a proposal for a directive on the protection of the environment, as it seeks to balance fiscal growth and environmental conservation.
- As the digital tax debate unfolds in Germany, with considerable public support, Russia's Minister of Finance is closely observing the situation, considering the potential implications of such a tax on the financial health of businesses, politics, and even general news.
