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Investing.com -- A junior member of German Chancellor Friedrich Merz’s cabinet has proposed a new 10% tax on major internet platforms such as Alphabet (NASDAQ:GOOGL) Inc.’s Google and Meta Platforms Inc (NASDAQ:META).’s Facebook. This proposal could potentially increase trade tensions between Germany and the United States.
Culture Minister Wolfram Weimer, in an interview with Stern (AS:PBHP) magazine, stated that digital services are on his "agenda" and he views a 10% tax as "moderate and legitimate." He also revealed that his ministry is in the process of drafting legislation for this tax.
Weimer, who was a media entrepreneur before his appointment, noted that large U.S. tech companies conduct billions worth of business in Germany with high profit margins. They benefit greatly from Germany’s media, cultural content, and infrastructure. However, he criticized these firms for paying minimal taxes, investing too little, and giving back inadequately to society.
This tax proposal was not coordinated with other ministries, as revealed by a government official who requested anonymity due to the internal nature of the discussions. Despite this, the proposal is in line with Chancellor Merz’s coalition agreement, which advocates for the taxation of digital companies, the official further noted.
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