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Yes, themselves, writ-big as a society. Producers and consumers aren't abstractions discrete from each other.
We'll see that explanation rolled out over the weekend.I see I'm talking to myself, but hey, someone might read it.
If Labour follow the lead of the French Digital Services act and apply a similar tax levy on companies at roughly the same points of 3% on digital services targeted at UK users. At current the French model is set at €750 million on global services and €25 million on French specific services, both of those thresholds must be hit. The tax, they reckon will generate €500 million a year for France that's based on a user base of 44.9 million and an online spend of $42,674m per year.
In many ways, the online spend is a little redundant as this DST tends to focus more on taxing the provision of digital advertising, rather than goods sold via e-commerce. In that case it's better to look at the user base as these are the people companies are targeting and paying Google, Facebook etc to access. The userbase in the UK stands at 59.5m. So using a very simple fag packet formula each French user would be generating €11.13 in tax revenue. Applying that to the UK we'd get about €600m per year. It's estimated that the cost of the infrastructure a year would be £230m so, it's more than covered, but of course also need to factor in setup costs.
Labour have said they could potentially generated £6bn per year with their version of DST. I'm really not sure how they are going to do this without completely obliterating the way business is done online.
There's also the issue of cannibalisation of other taxable income. Already Amazon have passed the 3% onto companies that sell through their platform, so companies will have to pay this and either take the hit themselves or pass it onto consumers. When some companies are already operating on single figure profit margins, it seems an even tighter squeeze, that if more radical taxation is used could result in a lot of web based companies really struggling, especially if they are reliant on the bigger companies to reach customers.
So, I do hope Labour can provide something that shows where this money is coming from and can be done in a sustainable way that protects SME's reliant on Digital services.
U.S. tech industry leaders: French digital service tax harms global tax reform
Major tech firms and U.S. tech industry groups said on Monday that France's new digital services tax undermines the global tax regime and multilateral efforts to reform it.France: Digital services tax (3%) is enacted
Digital services tax (3%) retroactively applies to digital services revenue as of 1 January 2019eCommerce - United Kingdom | Statista Market Forecast
United Kingdom: Revenue in the eCommerce market amounts to US$78,903m in 2019. The eCommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C).www.statista.com
eCommerce - United Kingdom | Statista Market Forecast
United Kingdom: Revenue in the eCommerce market amounts to US$78,903m in 2019. The eCommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C).General election 2019: Labour pledges free broadband for all
Labour would part-nationalise BT to deliver the policy and tax tech giants to help cover the £20bn cost.
I see I'm talking to myself, but hey, someone might read it.
If Labour follow the lead of the French Digital Services act and apply a similar tax levy on companies at roughly the same points of 3% on digital services targeted at UK users. At current the French model is set at €750 million on global services and €25 million on French specific services, both of those thresholds must be hit. The tax, they reckon will generate €500 million a year for France that's based on a user base of 44.9 million and an online spend of $42,674m per year.
In many ways, the online spend is a little redundant as this DST tends to focus more on taxing the provision of digital advertising, rather than goods sold via e-commerce. In that case it's better to look at the user base as these are the people companies are targeting and paying Google, Facebook etc to access. The userbase in the UK stands at 59.5m. So using a very simple fag packet formula each French user would be generating €11.13 in tax revenue. Applying that to the UK we'd get about €600m per year. It's estimated that the cost of the infrastructure a year would be £230m so, it's more than covered, but of course also need to factor in setup costs.
Labour have said they could potentially generated £6bn per year with their version of DST. I'm really not sure how they are going to do this without completely obliterating the way business is done online.
There's also the issue of cannibalisation of other taxable income. Already Amazon have passed the 3% onto companies that sell through their platform, so companies will have to pay this and either take the hit themselves or pass it onto consumers. When some companies are already operating on single figure profit margins, it seems an even tighter squeeze, that if more radical taxation is used could result in a lot of web based companies really struggling, especially if they are reliant on the bigger companies to reach customers.
So, I do hope Labour can provide something that shows where this money is coming from and can be done in a sustainable way that protects SME's reliant on Digital services.
U.S. tech industry leaders: French digital service tax harms global tax reform
Major tech firms and U.S. tech industry groups said on Monday that France's new digital services tax undermines the global tax regime and multilateral efforts to reform it.France: Digital services tax (3%) is enacted
Digital services tax (3%) retroactively applies to digital services revenue as of 1 January 2019eCommerce - United Kingdom | Statista Market Forecast
United Kingdom: Revenue in the eCommerce market amounts to US$78,903m in 2019. The eCommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C).eCommerce - United Kingdom | Statista Market Forecast
United Kingdom: Revenue in the eCommerce market amounts to US$78,903m in 2019. The eCommerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C).General election 2019: Labour pledges free broadband for all
Labour would part-nationalise BT to deliver the policy and tax tech giants to help cover the £20bn cost.
It wouldnt be just a limited amount of companies though it would be everyone in the higher tax bracket paying more, with zero income tax rises for ordinary people.
No, just Johnson on Fathers Day.
lol