Sarkozy: Internet giants should be taxed

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PARIS, March 16 (UPI) -- Internet giants such as Twitter, Google and Facebook should pay taxes on online advertising revenues in France, French President Nicolas Sarkozy says.

"It is unacceptable that they have a turnover of several billion euros in France without paying tax," he said in an interview Wednesday, suggesting his government should consider taxing the revenues.

A proposed tax on online advertising revenues was rejected last year by French lawmakers who feared it would hurt small local companies more than global Internet companies, Radio France Internationale reported.

A Google spokesman, responding to Sarkozy's remarks, argued "the Internet offers a wonderful opportunity to generate growth and jobs in France."

Internet companies contributed $80 billion to the French economy in 2009 and could create 450,000 jobs by 2015, the spokesman said.

"This positive contribution would have a better chance of coming about in an environment that is supportive of the Web in France and of investment in the sector," he said. "Public policy should support this."