International Economics: IB Economics

I have relatively little to say about this, other than: it's about time. 

The big tech firms have, it is true, brought an awful lot of benefits. However, they've been able to free ride on technological developments generated by the public sector, harvest data at zero cost, in a way that discriminates against consumers and avoid tax to a ridiculous degree. 

Instead of lionising Sergei Brin, Larry Page, Mark Zuckerberg et al shouldn't we be vilifying them for not paying their dues to society? 

Tax avoidance, big tech, the developing world. 

No surprises that its technology companies gaming the system once again - and the ethics of it? Well, their denying developing economies tax revenues that could help fund healthcare and education. 

A question of tax avoidance or protectionism? The French would argue the former, the US the latter. 

I suspect that, as ever, the truth lies somewhere between the two.

Just remember "We're All in this Together" - unless, of course, your on of the Big Tech firms, with the possible exception of Apple - who've done astoundingly well from the past few months.

It seems the Facebook has admitted tax evasion, in agreeing to pay France nearly 106 million euros in back taxes. Yet again, the company is forthright in asserting that it takes it's obligation to pay its taxes and has agreed to increase its tax payments to France for 2020.

However, it seems that in doing this, it is also effectively admitted that its decision to pay taxes is arbitrary, and this seems to indicate that the tax system lacks 'certainty', one of Adam Smith's canons of taxation. 

Again, it rather implies that Facebook's approach to tax is one of minimal legal compliance, rather than an ethical commitment to meeting its tax obligations. 

Despite the introduction of the UK digital services tax in the latest Budget, it seems that the EU is struggling to do the same. And this should be no surprise, given the difficulties of co-ordinating the different member states.