Photo: Emmanuel Dunand / AFP / Getty Images.

The European Commission will vote next week on a proposed 3% tax on digital revenues of large tech companies such as Google, Facebook and Amazon that do significant business abroad. Digital advertising and gig economy services would be within the scope of the tax, per a draft of the proposal obtained by Reuters.

Why now: EU states have criticized some U.S. tech firms for avoiding taxes there by housing profits in states with low tax rates, such as Ireland.

The bigger picture: The EU currently taxes profits of companies in countries where they are headquartered. The cross-border digital economy has left many countries wanting a new tax solution that takes into account the location of the companies' users, rather than the location of the companies' physical presence.

Tech's response: The proposal to tax companies' revenue (rather than profits) is getting a cool reception from U.S. firms.

  • Josh Kallmer, SVP of the Information Technology Industry Council, acknowledged there are legitimate concerns over cross-border tax regimes. But he said that broader, multi-lateral discussions are needed to arrive at a tenable solution.
  • The tech industry has asked Treasury Secretary Stephen Mnuchin to get involved in the talks.

Go deeper

Caitlin Owens, author of Vitals
22 mins ago - Health

The coronavirus is starting to crush some hospitals

Illustration: Aïda Amer/Axios

Some states are seeing dangerous levels of coronavirus hospitalizations, with hospitals warning that they could soon become overwhelmed if no action is taken to slow the spread.

Why it matters: Patients can only receive good care if there's enough care to go around — which is one reason why the death rate was so much higher in the spring, some experts say.

Scoop: The Lincoln Project is becoming a media business

Illustration: Eniola Odetunde/Axios

The Lincoln Project is looking to beef up its media business after the election, sources tell Axios.

Driving the news: The group recently signed with the United Talent Agency (UTA) to help build out Lincoln Media and is weighing offers from different television studios, podcast networks and book publishers.

Trump, Biden strategies revealed in final ad push

Data: Bully Pulpit Interactive; Chart: Danielle Alberti/Axios

President Trump is pouring hundreds of thousands of dollars into Facebook ads on the Supreme Court and conservative judges in the final stretch of his campaign, while Joe Biden is spending over a million on voter mobilization, according to an analysis by Axios using data from Bully Pulpit Interactive.

The big picture: Trump's Facebook ad messaging has fluctuated dramatically in conjunction with the news cycle throughout his campaign, while Biden's messaging has been much more consistent, focusing primarily on health care and the economy.