Though that’s easier said than done!
ech Giants are big (Really big). With the billions they received in funding for growth, they have not only solidified their position as tech leaders, but also, global corporate leaders that generate billions in revenue every year.
Critics & stakeholders feel that it is important to control their activity, especially, when they act irresponsibly and while we couldn’t agree more, we’d like to acknowledge the fact that there’s only one thing that govt’s can do to limit their monopoly-like rise (i.e if they don’t breach any law) – force them to pay higher taxes.
The idea for of a ‘global tech tax’ has been in the pipeline for quite some time and economies like Britain & France have strongly advocated it during this year’s G20 Summit in Japan.
To protect smaller tech companies and generate a fairer tax system, the Global tech tax would only be levied on those companies that generate $500 Million or more (in revenue).
While US obviously disagrees (since most tech companies reside in California’s Silicon Valley), the participants have agreed in principle to levy this tax by 2020.
Our take 🧐
Preparing a framework for such a tax is going to be extremely complicated and it cannot be implemented unless all countries vote for it unanimously. Additionally, global politics will significantly impact such a move since a global tax would disable these giants from routing their profits through tax havens like Bermuda & Ireland.