Keyword: digital service providers

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Europe

Digital Sales Tax

This week’s IGM European Economic Experts Panel statements:The European Commission has proposed new rules to ensure that “digital business activities are taxed in a fair and growth-friendly way in the EU”. Consider two statements regarding this proposal: An EU-wide 3% tax on revenue from digital activities would, on balance, be a good idea. If the EU decides to tax digital service providers, it would be better — given the difficulties of measuring and verifying digital activity — to tax them on the revenue, rather than the profits, that they generate locally.
US

Net Neutrality II

This week’s IGM Economic Experts Panel statement: Considering both distributional effects and changes in efficiency, it is a good idea to let companies that send video or other content to consumers pay more to Internet service providers for the right to send that traffic using faster or higher quality service.
US

Stock Prices

This week’s IGM Economic Experts Panel poll statement: Unless they have inside information, very few investors, if any, can consistently make accurate predictions about whether the price of an individual stock will rise or fall on a given day. Plausible expectations of future dividends, discounted using a plausible risk-adjusted interest rate, explain well the level of stock prices for recently listed internet businesses in 1999.