On this episode of the AEI Events Podcast, tax policy experts gathered to discuss the European Commission’s proposed plan to tax digital commerce. The commission has set forth both an interim plan and a longer-term solution, which will require unanimous consent of the member states to become law.

First, European Finance Commissioner Pierre Moscovici outlined the goals and major objectives of both plans. The interim plan consists of a 3 percent tax on various types of digitally facilitated commerce that meet the commission’s new “significant digital presence” standard. The long-term solution would entail harmonizing corporate tax policies among the member states to establish a uniform formula for digital taxation. Each plan rests on the principal that users are creating value and the states they reside in should be able to tax that value. AEI’s Stan Veuger then discussed the proposal with Mr. Moscovici, focusing on the goals, taxation principals, and political obstacles of the plans.

Later, Itai Grinberg from the Georgetown Law Center, William Morris from PricewaterhouseCoopers, Stephen Quest from the European Commission, and Joann Martens Weiner from George Washington University joined Dr. Veuger on a panel to further discuss the digital corporate tax.

This event took place on April 19, 2018.

Watch the full event here.

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