Taxing ISP’s?

I just saw that France is about to impose a tax on ISP’s in order to pay for state funding for music and cultural events.  President Sarkozy said

Globalization is now, and the giants of the internet earn lot of money on the French market. Good for them, but they do not pay a penny in tax to France.

Hmm … but in the end, the giants won’t pay the new tax. It will be passed on as higher sign up fees and users will pay.

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