Local shops close, while Amazon & Co make huge profits: the digital tax must come now!

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In many countries, local retail shops have to close before Christmas because of the Corona pandemic. This pandemic is bringing many shops to the brink of their existence. Entire city centres are threatened with economic extinction. And now, of all people, the tax dodgers from Amazon or Google are profiting from this plight of the local retail shops. Their businesses are now flourishing all the more because many people do their shopping online.

Digital corporations like Amazon and Google pay an average of only 9.5 % tax on their profits in the EU. Other companies, on the other hand, pay 23.2 %. The fact that local retail shops are closing and online retail is booming even more will further exacerbate the inequity between them. At least in terms of taxes, the unfair competition between locally rooted retail and digital corporations must end. The solution is a digital tax that puts a stop to these unprofitable profits of digital companies. 

But the digital tax is still being postponed at the European level because of the blockade by the EU member states. In this historic economic crisis, the state must counteract the crisis with high spending. Therefore, the EU states must not wait any longer: We need the digital tax now!

In Europe, France, Austria, Italy, Poland, Hungary and Spain have long since introduced national digital taxes because they did not want to wait any longer for Germany. But, most of these taxes do not tax the bulk of business made by digital giants such as Amazon or Apple. Other EU countries have already presented corresponding plans. The German and other government are blocking the introduction of a Europe-wide digital tax by referring to a global solution. But this global solution will not come any time soon. Now, in the crisis, the blockade by the governments is becoming even more counterproductive. The profits of the digital corporations are getting bigger, their taxes remain indecently small. That is why we need a quick change of course now: 

All governments must introduce digital taxes immediately. And in such a way that all large digital companies including Amazon, Google, Apple & Facebook have to pay taxes where they operate in the future!

In this Corona crisis, governments have already implemented many measures at a fast pace. This urgency is now also needed for the digital tax. Digital corporations must live up to their social responsibility. Especially now, when they are profiting from the fact that other businesses have to close. And especially now, when the state has high expenses and urgently needs this tax revenue. 

Instead of passing on the costs of the Corona pandemic to future generations, digital companies should finally make their fair contribution to the common good. Digitalisation must no longer take place beyond the common good!