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StopeTaxes.com has reported on the numerous attempts by state legislators around the U.S. to tax all sorts of digital goods and online commerce. Unfortunately, it appears that our friends across the pond are taking a cue from their yankee counterparts and looking to impose their own form of eTaxes. The specific target in this case: Google, however all search engines, and many newspapers, would find themselves ensared in the new proposals. The Daily Mail recently reported on the matter:
"Google could be be hit with an online advertising tax to boost the coffers of the BBC, under proposals being discussed by the Government.
Ministers are considering taxing search engines, download websites and broadband providers to fund public service TV and the roll-out of broadband."
£100million ($150,240,390), is a hefty tab when it comes to the imposition of tax hikes in the middle of a global economic downturn. And it certainly provides ample incentive for a company to relocate, unfortunately for the British economy, that we be on a company and an industry that provides an abundance of services and creates hundreds of jobs in the UK.
So why, you might ask, would British officials look to such an ill-advised proposal? The answer: they are hungry for money and Google has a lot of it. Unfortunately, proponents of the so-called "google tax" fail to recognize that corporations do not pay taxes, people do. Proof of this can be found in the same Daily Mail article which adds that the proposed search engine tax may:
"force firms to start charging for emailing, internet searches, and social networking, which are used by millions of Britons every day."
MP John Whittingdale, chair of the Department for Business, Enterprise & Regulatory Reform expressed his opposition to the various eTax proposals, adding:
"I have never been in favour of levies. I just don't like the idea of extra tax anyway...If you charge Google it would be the equivalent of a windfall tax. Here is a company making lots of money so let's charge them."
As it would so happen, two governments whose lawmakers rarely meet a tax increase that they don't like, France and California, have recently rejected similar proposals due to the undeniable adverse economic effects.
All eTax proposals under consideration in the UK must be approved by the Treasury
Stayed tuned for more updates on this important matter.





