WASHINGTON –Italy, facing a huge budget crunch, may turn to taxing international online businesses like Google, Amazon or Yahoo.
Reuters reported that this “Google tax” has become a popular idea in Europe as many European Union countries face significant budget hurdles and crisis in recent years.
The U.K. blamed Google and Amazon for not paying enough taxes and using tax shelters to shield themselves from British tax laws. France had thoughts about enacting a tax on these multinational businesses at one point, too.
Italy’s center-left Democratic Party proposed a bill to raise 1 billion euros through this “Google tax”, where companies who advertise and sell online will have to do so with a physical, taxable presence in Italy. Many fear that this will drive these companies out of the country and further exacerbate the country’s economic doldrums.