Posted on 06/30/2025 10:23:19 PM PDT by MinorityRepublican
Had Canada not halted a digital services tax enacted in 2024 that applies retroactively to 2022, US tech giants would have needed to pay Canada approximately $3 billion upfront on Monday, on top of a 3% levy on all revenue earned from digital services linked to Canadian users going forward.
The Computer & Communications Industry Association estimated that Canada's tax measure would lead to annual losses of between $900 million and $2.3 billion for US firms and could result in up to 3,000 job losses in the country.
In a separate estimate by Canada's Parliamentary Budget Officer in 2023, the DST would generate CA$7.2 billion in revenue for the government over five years, which is about $5.29 billion at the current exchange rate.
The digital services tax, which is a tax on companies that earn revenue in Canada through social media advertisements and other online services, was halted on Sunday after President Donald Trump announced on his social media on Friday that the US would be "terminating ALL discussions on Trade with Canada" over the measure.
Canadian Minister of Finance and National Revenue François-Philippe Champagne will introduce legislation to officially rescind the tax.
US Treasury Secretary Scott Bessent also discussed launching a Section 301 investigation on Canada's tax measure on CNBC on Friday.
"Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis," wrote Mark Carney, Canada's Prime Minister, in a statement posted by Canada's Department of Finance.
The tax measure would have applied to tech companies with worldwide annual revenues greater than 750 million euros ($885 million) and Canadian digital services revenue greater than $20 million a year.
(Excerpt) Read more at businessinsider.com ...
Move over big dog, there’s a mean old dog movin in.
“US tech giants saved billions with Canada backing off its digital services tax”
Its extremely difficult to get excited over this when the big tech companies are going to funnel all of it to the Democrats one way or another.
If you’re referring to Canada, it’s not a big dog.
Canada is a pit yorkie.
(Credit for imaginary canine breed: Rush Limbaugh)
The level of excitement is irrelevant.
What matters is CACO.
And the realization that Canada and Mexico are not allies — but have become our enemies since NAFTA and its sucessor.
Looking at it another way, Digital Services are big part of our economy, accounting for millions of jobs, and millions more that depend on them. Digital services are the one of very few industries where we lead. If you include services in our total exports, we exported about $3T in 2023, of which over $650B was digital services. Over 20% of our total global exports are digital services, making it a huge sector of our economy. Our trade surplus in the services category actually offsets a large chunk of our deficit in trade goods. Losing our advantage in this sector globally would hit our economy pretty hard.
There. Fixed it.
Thank you for keeping perspective of this as tech services being part of our overall surplus/deficit math. And I guess another part is security. The more tech/cloud services stay in the U.S., the less control over us we give to other countries.
And Canada should remember that 75% of their exports are to the USA.
Trump Saved U.S. Tech Companies Billions
There. Fixed it.
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Not really.... like any tax, this would just get passed on to the consumers. The hilarious concept with all this is Canadians thanking PDJT for putting an end to a tax that they ultimately would be paying. Think that will happen?
Canadian Minister of Finance and National Revenue François-Philippe Champagne will introduce legislation to officially rescind the tax.....
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Why bother? Why don’t the Liberals just continue to govern by executive fiat like they’ve been doing for the past year? If Canadians had any sense at all about how close their country resembles a total dictatorship, they’d be in the streets...The big disappointment is that the Conservatives under Pierre Poilievre aren’t hammering on this every day.
Pierre is the Canadian version of Mitt Romney.
I’m referring to the realization that big tech are not allies.
Big tech are enemies too.
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