11–20 of 304 posts
It will hit the startups the most. Why? Most big companies have economies of scale and small companies must pinch every dollar. Already tax avoidance is best done by large players, not small ones. So please vote against it if you are an entrepreneur and wanna become rich through entrepreneurship and hard work.
The big issue here is that eventually all taxes will be transferred to end customers. The profits for businesses don’t get lowered because of more taxes (unless demand drops). So people in every country should be worried when government eyes for more taxes.
Tax on sales is bad. It will hit the startups the most. Why? Most big companies have economies of scale and small companies must pinch every dollar. Already tax avoidance is best done by large players, not small ones. So please vote against it if you are an entrepreneur and wanna become rich through entrepreneurship and hard work.
Lots of rules already target larger companies and not smaller ones.
Couldn't we just ban tax evasion? What makes it so hard? (honest question) A recent European study has shown that the more company win money, the less they pay in taxes (in percentage). Is it because of bad laws? Corrupt politicians? Something else?
Couldn't we just ban tax evasion? What makes it so hard? (honest question) A recent European study has shown that the more company win money, the less they pay in taxes (in percentage). Is it because of bad laws? Corrupt politicians? Something else?
Governments should reduce the number of unintentional loopholes but (a) it's far easier to pass new laws than amend old ones, (b) if you change a law that an existing big domestic firm or voting block is exploiting they will let you know at the polls; with a new law you can sell it as "balanced fiscal justice - righting a great wrong by making big foreign multinationals pay their fair share!"
I'm definitely not against tax reform, my big concern is the common approach of new taxes as political theater without any honest attempt at simplification, broad application or coordination with other jurisdictions. All this tax is doing is targeting a small, low-vote target that will figure out a complicated way to shift taxable revenue into a different jurisdiction, perpetuating the exact problem it supposedly addresses.
Earlier quoted context omitted.
It's because for an international company there is really no clear cut way to say what is tax evasion and what is not. If your company is incorporated in France, has offices in Ireland and serves customers all over the world, how do you calculate where to pay what? Sovereign countries are free to set their tax rate to 0 in order to attract companies there.
>Sovereign countries are free to set their tax rate to 0 in order to attract companies there. Then those companies should only sell products and services in those countries. Otherwise, something should be done about it. I'm not saying it's easy, but it can be improved.
Earlier quoted context omitted.
As I understood the article, this is a tax on sales, not profits.
To ddebernardy's point then, why not charge VAT?
To be precise you do pay VAT in some cases but then it is refunded. So no money to government.