Why ‘Digital Taxes’ Are the New Trade War Flashpoint: QuickTake

Big internet companies have long been the target of complaints that they don’t pay enough in taxes. Fed up, France became the first country to introduce a “digital tax” -- a 3% levy on the digital revenue of companies that make their sales primarily in cyberspace, such as Facebook Inc. and Alphabet Inc.’s Google. Other nations are also targeting companies -- many of which are American -- that have multinational earnings that often escape the taxman’s grip. The U.S. has threatened retaliatory tariffs, potentially opening another front in the global trade war.

1. How does a digital tax work? ...