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Macron: US, France reached 'very good agreement' on digital tax

Macron: US, France reached 'very good agreement' on digital tax
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French President Emmanuel MacronEmmanuel Jean-Michel MacronSuspect of Nice, France killings came to country from Italy Macron deploys 7K soldiers to protect against attacks Vatican condemns knife attack at French church: 'Terrorism and violence can never be accepted' MORE said Monday that his country and the U.S. have reached a "very good agreement" on France's digital tax.

Macron said at a joint press conference with President TrumpDonald John TrumpBiden campaign slams Facebook after thousands of ads blocked by platform's pre-election blackout Mnuchin says he learned of Pelosi's letter to him about stimulus talks 'in the press' Harris to travel to Texas Friday after polls show tie between Trump, Biden MORE following the Group of Seven summit in France that when an international tax on digital services is established, France will get rid of its national tax and companies that have paid France's digital tax "will be reimbursed."

"The idea is that we need to find a joint agreement in order to address joint international problems," Macron said. "And the situation right now is very negative, and the international tax system definitely needs to be modernized, and I think we will work together in a spirit of cooperation on this."

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Macron also took to Twitter to tout the agreement after the press conference.

"Some digital players pay very little tax. This is an injustice that destroys jobs. @realDonaldTrump and I have just agreed to work together on an agreement at the @OECD level to modernize international tax rules," Macron tweeted.

The Organization of Economic Cooperation and Development, an intergovernmental economic organization, is aiming to develop a solution to the tax challenges of the digital economy by the end of 2020.

France earlier this year enacted a 3 percent tax on the annual revenues from digital services of large companies, including prominent U.S. tech businesses. The United States' trade representative has launched an investigation into the tax to determine whether it is discriminatory or restricts U.S. commerce.

U.S. tech companies such as Amazon, Facebook and Google have argued that France's law unfairly targets them.

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Macron said Monday that there are large multinational corporations who aren't paying taxes, which leads to economic instability. He said that France's tax isn't designed to target any specific company and that there are a lot of French companies that will be affected by the tax.

Macron's comments on a U.S.-France agreement come after Reuters reported earlier on Monday about the compromise.

Sen. Ron WydenRonald (Ron) Lee WydenOn The Money: Dow falls more than 900 points amid fears of new COVID-19 restrictions | Democrats press Trump Org. about president's Chinese bank account | Boeing plans thousands of additional job cuts Democrats press Trump Organization about president's Chinese bank account Plaintiff and defendant from Obergefell v. Hodges unite to oppose Barrett's confirmation MORE (D-Ore.), the top Democrat on the Senate Finance Committee, said in a statement Monday that the Trump administration "should reject any deal that allows France and other countries to move ahead with discriminatory taxes on U.S. technology companies, in exchange for vague promises down the line."

"If Donald Trump gives France a pass now, then it will be open season for foreign governments to go after major American employers,” Wyden said. 

Updated at 4:50 p.m.