G8 Looks For Way To Tax Internet

The G8 has announced it will meet in late May to discuss possible approaches to taxing the internet. “Internet leaders” will also be involved to get an industry perspective. 

The truth of the matter is the secret to internet tax has always been a global solution. Without it, the companies making the most money can pull a “GE” and position themselves in areas of the world where there is not tax liability. Unless there is a global solution, the big boys on the web will laugh their way to the bank.

We see this happening on the state level in the United States. One only has to look at states like Illinois that blindly pass internet sales tax in the face of threats from internet companies to leave the state then has an idiot Governor who acts shocked when the companies do leave and affiliate businesses in the state are terminated by companies like Amazon. 

Countries

The question many have is what does a concerted world internet tax look like and how is it enforced.? Consider a country like Google. It is huge everywhere, so where does it pay tax and should it? The argument for paying tax is it gets the benefit of infrastructure in the countries, which is logical. So, how does one parcel tax for the countries? If you have an idea, perhaps you should be at the meeting!

Will the G8 find a solution to the internet sales tax? Usually, I would say no, but this is world where countries need money something fierce. Given this, it would be wise to plan for some major changes on internet tax issues this year.