> I never understood the logic behind taxing large internet businesses.
> The idea behind taxes is that you use some public resource and you pay for that service. You own a home in a neighborhood, you pay property tax that funds the schools. You drive a car, you pay gasoline tax that funds the streets. You hire workers locally, you pay the tax to pay back all the contributions public institutions made to adding the skills to the worker.
Taxation is used to encourage activities the govt thinks are beneficial to society, and discourage activities that are detrimental. In the US, married couples and those with children get tax breaks. This in spite of the fact that children use government services, accruing greater public costs. However the powers that be find it beneficial to encourage marriage and family building, I suppose because it hypothetically leads to greater stability and encourages more long term participation in the economy (can't quit your job and travel the world if you have kids to support).
So in short yes, the government can and does tax (or exempt from tax) whatever or whoever it wants, within the limits of the country's constitution and their courts' interpretation thereof. There is no requirement that it be directly correlated to a service the government provides.
Leveling the playing field wrt the inherent advantages that a large tech firm benefits from (economies of scale) does seem to be within the reasonable purview of a government which wants to protects its constituents from a tendency of the free market towards monopolization. This tax encourages competition by smaller players, which keeps Amazon honest. It is only not necessary if you trust Amazon to always act in the best interests of the consumer even after stamping out all competition.
> The idea behind taxes is that you use some public resource and you pay for that service. You own a home in a neighborhood, you pay property tax that funds the schools. You drive a car, you pay gasoline tax that funds the streets. You hire workers locally, you pay the tax to pay back all the contributions public institutions made to adding the skills to the worker.
Taxation is used to encourage activities the govt thinks are beneficial to society, and discourage activities that are detrimental. In the US, married couples and those with children get tax breaks. This in spite of the fact that children use government services, accruing greater public costs. However the powers that be find it beneficial to encourage marriage and family building, I suppose because it hypothetically leads to greater stability and encourages more long term participation in the economy (can't quit your job and travel the world if you have kids to support).
So in short yes, the government can and does tax (or exempt from tax) whatever or whoever it wants, within the limits of the country's constitution and their courts' interpretation thereof. There is no requirement that it be directly correlated to a service the government provides.
Leveling the playing field wrt the inherent advantages that a large tech firm benefits from (economies of scale) does seem to be within the reasonable purview of a government which wants to protects its constituents from a tendency of the free market towards monopolization. This tax encourages competition by smaller players, which keeps Amazon honest. It is only not necessary if you trust Amazon to always act in the best interests of the consumer even after stamping out all competition.