ČSSD's digital tax

03.02.2020 - EB

Who will be hurt the most if the CR imposes a 7% digital tax on the likes of Amazon, Facebook, Google and Microsoft? Those companies? Hardly. They'll find a way to pass on the cost to their customers. If the case of France is any indication, and it most likely is, Donald Trump will retaliate by targeting the Czech family silver - meaning successful Czech companies that are active in the U.S. or exporting to there. Reducing the 7% tax to 5%, or to the French rate of 3%, would change the mathematical calculation but not the type of punishment meted out. Czech exporters would still be hit hard. When Emanuel Macron was faced with this same reality, he passed the tax but suspended its implementation, contingent on reaching a broader agreement. This put the ball in Trump's court. Why can't Andrej Babiš do the same thing? Because ČSSD won't let him. If ČSSD wants to take credit for the digital tax, it must also accept responsibility for the repercussions from it on Czech companies.

Glossary of difficult words


to retaliate - to make an attack in return for a similar attack;

to mete out - to dispense or allot justice, punishment, or harsh treatment;

contingent - occurring or existing only if (certain circumstances) are the case;

the ball is in someone's court - the responsibility for taking action lies with someone;

repercussion - (usually repercussions) an unintended consequence of an event or action, esp. an unwelcome one.



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