Ask 10 economists, you'll get 10 different answers. But opinions are news now because we need to keep that train rolling in the new 24/7 news economy. My own opinion is that he "capitulated" to get the trade talks started again se he can get past that July 21st deadline and then proceed accordingly.

I agree with the Nobel Laureate in economics, Joseph E Stiglitz, who wrote this.

Of course, when the most profitable companies in the world don’t pay their fair share of taxes, it just shifts the burden on to others.

Apple was so successful in avoiding taxes in Europe that it is estimated that it paid in some years a tax of just 0.005% on its European profits.

You cannot believe how sick it is to open Lemmy and the first thing you see is a picture of Zuckerberg.

I hope Carney reintroduces it after these trade talks fail.

The last thing you do when a toddler throws a tantrum is give in to their demands. You reinforce their behaviour and teach them it works. Every child phsychologist can tell you that.

So why the fuck are world leaders, with the resources of an entire country, enabling this whiny man-child?!

The media can keep bashing the Canadian government scrapping the tax. The last minute "capitulation" as many in the media is framing it as, while true, is also disingenuous on how Canada has to deal with the US given the cards it has in hand. Canada right now still relies heavily on exporting things to the US and keeping the US at the table talking is the best it can do right now until it can secure other trade deals around the world. Proximity matters and even more so when they are still is a superpower.

Canada still has many options despite this digital tax. What about banning US big tech? What about changing the rules about tech companies entering Canadian job space (and it doesn't have to be a tax)? Other countries have managed (eg. China, Denmark), so why can't Canada? The government can fight on one front, but Canadians themselves also have to. The boycott of travel to the US and of US goods clearly has made impact, but Canadians can do more. Support open source software like Linux, move away from Adobe and so forth. There are alternatives and some even Canadian ones. If we are to truly give the Canadian government good tools to fight, we too must do our jobs individually.

These companies have also devastated local news media markets, peddle propaganda and disinformation in our societies which they claim is not their job to moderate, through their investments in AI are poised to become some of the biggest polluters, and many of them profit a lot from the ongoing genocide in occupied Palestine which is being used as a warfare and AI training lab

We are clearly in the appeasement phase, I think that has been apparent for a while now

The answer: countries will cave in to these threats. For now, at least.

Rolling over and showing your belly never ever helps.