Forsa Survey Shows a Majority of Germans Support Weimer's Digital Tax Proposal
Majority of federal residents endorse the digital royalty tax - Most Germans favor implementing a digital taxation system.
Written by Helmut Broeg
In a bid to ensure tech behemoths contribute their fair share, Culture and Education Minister Wolfram Weimer is set to introduce a 10% tax on the ad revenues of giants like Alphabet (Google's parent company) and Meta (the owner of Facebook, WhatsApp, and Instagram). Wesimer intends for this digital tax to apply to all platforms that make use of media content[1][2][3].
According to a Forsa poll, it appears that Weimer's proposal has widespread support among German citizens. An astounding 85% believe that tech titans like Google and Meta should be paying more than they currently do. Even among supporters of the far-right AfD party, a considerable 70% back the digital tax[4]. Almost all voters of the Green and Left parties also endorse Weimer's proposal.
Austria Leads the Digital Tax Charge
Up until now, U.S. internet giants have managed to dodge taxation in Europe, mostly by shifting their European headquarters to low-tax countries. However, Austria has paved the way by taxing advertising revenues at 5% since 2020[5].
Though Weimer hasn't outlined an exact timeline for when or how he plans to implement his proposal, the goal is to strengthen the local media landscape with the revenues. The digital services levy is part of an agreement among Germany's ruling parties[6].
Poll conducted by market and opinion research institute Forsa for Stern and RTL Germany on June 4-5, 2022. Sample size: 1007 respondents. Statistical margin of error: +/- 3 percentage points, making the poll representative.
- Wolfram Weimer
- Digital Conglomerate
- Forsa
Behind the Numbers:
- The proposed tax rate of 10% is considered reasonable by Weimer[1].
- The primary targets of this levy would be U.S.-based tech corporations such as Google, Facebook, WhatsApp, and Instagram[2][3].
- While specifics about implementation and timing are still unclear, the digital services tax is part of a broader agreement among Germany's ruling parties[6].
- The main objectives of the tax are to combat tax evasion and address concerns about the monopoly-like structures of these companies, which threaten competition and media diversity[3][6].
The implementation of this tax might stir up tension in U.S.-German trade relations, potentially triggering retaliatory measures, as similar taxes have faced opposition from previous U.S. administrations[1][3][6].
- The Commission, in light of Weimer's digital tax proposal gaining broad support, has also been asked to submit a proposal for a directive on the protection of the environment, potentially including regulations to address the financial impact of digital service taxes on the sustainability of businesses and general news.
- In the realm of politics, discussions surrounding finance and business are gaining momentum, with the digital tax proposals by Weimer and potential future environmental directives likely to have far-reaching implications for tech conglomerates like Google, Facebook, and their affiliates, as well as local media businesses.
