In recent years, policy-makers in Europe have argued in favour of creating a new corporate tax for digital companies. They claim that digital companies (like Google, Apple, Facebook and Amazon) do not pay a fair share of taxes under the current system. In this episode, Fredrik Erixon talks to Matthias Bauer, Senior Economist at ECIPE, about these proposals. They explore their history, where they are being enacted, how they have been based in fallacious arguments and the negative consequences they will bring.