– A new report by the French government proposes taxing the online ad revenues
generated by Google (NASD: GOOG), Facebook and similar portals, with the proceeds going to promote
the legal sales of music, movies, books and other intellectual property on the
Internet, the Associated Press reported. The report does not yet contain any
specific tax proposals, but estimates that the taxes could eventually generate $14.3
One proposal would see tax revenues spent to help subsidize
the cost of cards that young people could use to purchase music online, while
others would fund book digitization and making more movies available online,
according to AP.
The proposals would cost an estimated $72 million in 2010, and
$50-$57 million in following years.
Google France’s public affairs director
told AP that it will seek "cooperation between Internet players and the
cultural fields to develop new models."