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A comment on France has approved a digital services tax despite threats of retaliation by US. Parent comment

Re:France has approved a digital services tax despite threat... by cstejerean on Thursday July 11, 2019 @01:12PM (#20413317)
And you think this new surcharge won’t be passed onto the consumers in France?
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Re:France has approved a digital services tax despite threat... by TeMPOraL on Thursday July 11, 2019 @01:24PM (#20413446)
It will be, ending the unfair competitive benefits of tax avoidance big Internet companies currently enjoy in much of Europe.
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Re:France has approved a digital services tax despite threat... by JAlexoid on Thursday July 11, 2019 @03:19PM (#20414651)
It will, but it'll not be above what the market is willing to bear. Right now digital services are charged at the level that a market can bear, but only digital services are the ones that don't get taxed.

To make stuff fair - you'd have to cut all other taxes or institute this one.

(I'd prefer no taxes, but that's never going to happen)

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Re:France has approved a digital services tax despite threat... by throwaway2048 on Thursday July 11, 2019 @02:28PM (#20414082)
This is the biggest fallacy about taxation, if they could charge whatever the price+tax is, they already would be.
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Re:France has approved a digital services tax despite threat... by ChrisLomont on Thursday July 11, 2019 @07:24PM (#20416806)
It’s not a fallacy. They charge to maximize revenue. If they charge more, people buy less. If their cost to produce goes up, their optimal price likely goes up, depending on elasticity.

This is Econ 101. Draw some supply-demand curves, compute total profit, increase costs, and see how the optimal point moves on the curve.

Historically companies do raise prices as cost to produce increases.

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