France And Germany Fight European Tax Loophole Used By US Companies

France and Germany want a more standardized European Union tax rate after some U.S. companies exploited some countries' low tax rates.
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France And Germany Fight European Tax Loophole Used By US Companies

Europe's two largest economies are teaming up to end tax loopholes used by some of the biggest U.S. tech companies.

France's finance minister told Bloomberg his country will work with Germany to coordinate more uniform tax codes so European companies can operate on a level playing field.

Companies like Google, Facebook and Amazon often move their profits to countries in Europe, where they won't be taxed as heavily.

Last year, Apple was fined $14.5 billion by the European Commission after it ruled Ireland gave the tech giant tax breaks that were so friendly they were illegal. In 2014, Apple's tax rate in Ireland dropped to just five-thousandths of a percent.

It's not all about raising taxes, though. France's President Emmanuel Macron wants to meet somewhere in the middle by lowering France's corporate tax rate to 25 percent.