The European Union is advancing a proposal to tax large corporations—including U.S. Big Tech—under a new scheme called Corporate Resource for Europe (CORE). Aimed at funding the EU’s 2028–2034 budget, CORE would impose a lump-sum levy on companies above a threshold, rather than targeting digital firms exclusively. But the plan is already facing resistance from member states who fear it could unfairly penalize European medium-sized businesses.
What’s in the CORE Plan
The CORE proposal targets companies with revenues over roughly €100 million (about USD $117 million), including any with subsidiaries operating in EU member countries. The levy is intended to be differentiated based on a company’s net turnover. Importantly, this structure is designed to avoid labeling the charge a “digital tax,” which might provoke trade retaliation from the United States. By casting a wider net—beyond purely digital businesses—the EU hopes to sidestep diplomatic clashes tied to earlier attempts to single out tech giants.
The proposal is part of the EU’s Multiannual Financial Framework for 2028-2034, the budget plan that sets the bloc’s financial priorities and funding. A previous plan centering on taxing technology companies specifically was dropped in July 2025 amid trade tensions and concerns over provoking punitive U.S. measures. CORE emerges as a revised approach with a broader base, introduced in recent EU planning documents.
Push-back from Within the EU
Despite the ambition behind CORE, divisions are emerging among the 27 member states. Some governments openly oppose reviving a digital-specific tax, worried about upsetting U.S. relations. Others are uneasy with CORE itself, arguing that it puts medium-sized EU-based companies at a disadvantage. Critics say that while the levy excludes the very smallest firms via the revenue threshold, the “large company” definition still catches many businesses that operate mostly within Europe.
The EU is reportedly trying to address these concerns by tweaking the threshold or exempting certain European companies so the levy hits firms whose scale and global reach mirror those of Big Tech. However, exact parameters—such as the financial thresholds, percentages, or operational definitions for “net turnover” and subsidiary attribution—are not yet finalized.
What’s Next—and What’s at Risk
If CORE can be passed, it must win unanimous approval among EU’s member states to become law. That is always a high bar, especially when internal economic interests diverge. Meanwhile, despite hopes that the plan won’t trigger U.S. retaliation, many expect pushback. Former U.S. administrations have threatened retaliatory tariffs over perceived discriminatory taxes on American firms. Though no response has been made public yet, worries remain.
CORE marks part of a broader shift in how international tax policy is being debated in an era of globalization and digital commerce. It reflects the EU’s attempt to balance funding needs as its budget approaches 2030, trade diplomacy, and fairness for domestic businesses. Whether it succeeds may depend on who lands in the middle—between keeping Big Tech in check, avoiding foreign retaliation, and supporting homegrown companies.
From a broader perspective, this proposal matters because it could reshape how multinational companies are taxed across multiple jurisdictions. It signals that regions are seeking alternatives to digital taxes by using broader levies. How thresholds are set and exemptions shaped will be critical—not just for U.S. firms, but for the future of EU competition policy, business investment, and global trade diplomacy. Watch in the coming months as member states haggle over details, try to build consensus, and potentially alter CORE’s scope to avoid unintended side effects.
