221–230 of 266 posts
This will be watered down in every way imaginable, escpecially the usual suspects like Malta with a straight up fraudluently advertised 30+ % corporate tax rate ,but they "refund" you everything but 5%, making it an effective 5% tax rate. There is no way Malta will play along, it is a small state abusing all the EU benefits for nefarious purposes and never contributing anything useful. This is just an example, there…
Earlier quoted context omitted.
Great way to kill off low margin important industries like steel
Steel just barely makes the list of top 100 US companies by revenue at #100. https://en.wikipedia.org/wiki/List_of_largest_companies_in_t... Would steel consumers be better off if the largest steel companies were broken in to smaller pieces?
This would destroy economies of scale and cause the price of steel to skyrocket. It would send the entire economy into a tailspin.
Low margin, large scale businesses are highly efficient from an economic standpoint. Doing anything to hurt these businesses would be disastrous to the economy. We want to encourage efficiency, not punish it.
Earlier quoted context omitted.
Because businesses are owned by people who in turn are taxed. In effect any corporation tax is a double tax.
That's how taxes work generally though. I already paid income taxes on my salary, but when I spend it on something I have to pay taxes again, and then the retailer has to count it as taxable income as well. Anytime money changes hands the government gets its vig. I don't see how the corporate tax is so egregiously different.
Earlier quoted context omitted.
Please educate us how companies are hiding profits in tax havens. Asking for a friend.
One mechanism is via a Double Irish with a Dutch Sandwich https://www.investopedia.com/terms/d/double-irish-with-a-dut... Another example is leveraging the secrecy provided by states such as South Dakota, Nevada, Delaware, etc. via anonymous shell companies: https://en.wikipedia.org/wiki/United_States_as_a_tax_haven
> European leaders praised the decision, with Germany's Chancellor Olaf Scholz describing it as a "project close to my heart". French President Emmanuel Macron said the country had been pushing the idea for more than four years. Of course countries with high taxes are all for raising taxes in countries where they are lower! Now, unfortunately the article does not mention the interesting bit, which is that EU countrie…
Didn't know about Hungary. All I was thinking was how EU had to force Apple and Ireland to pay taxes in Ireland, because... Ireland didn't want some free billions https://www.theguardian.com/business/2016/aug/30/apple-pay-b...
Earlier quoted context omitted.
It’s weird that individuals are taxed on revenue but corporations are (usually?) taxed on profit.
Individuals (in the US) have standard deduction, which approximates the minimum value to sustain one's person. It's a bad approximation, but it is what it is. It's assumed that corporations spend as little as possible on operations. Individuals obviously don't. Whereas a corporation wouldn't rent employees 500 sqft / person, individuals regularly rent/purchase that density for themselves. Similarly, while a corporati…
A ridiculous assumption. Corporations are incredibly wasteful and tend to solve problems by piling money on them until they’re fixed.
Earlier quoted context omitted.
It’s weird that individuals are taxed on revenue but corporations are (usually?) taxed on profit.
Not really. If you imagine a supply chain with raw materials at one end and finished products at the other, if every step along the chain is taxed even a small amount on their total revenue, the cumulative effect would completely dwarf the value of the final product. To solve this, in most countries, companies are taxed VAT instead, so intead of taxing the total value of product at every step, you are only taxing the…
there are 2 taxes.
direct and indirect.
direct taxes are paid by recipient themselves. (income tax is an example. a person/corp pays a tax on "net income after deductions" at whatever percentage)
indirect taxes are "collected" by the taxpayer but the person who ultimately buys a product pays it as the cost of product is inclusive of this indirect tax. VAT or GST or whatever. a business who is registered for indirect tax collects it from the customer and pays it to government. this indirect tax is not shown in their profit and loss account because for a business, they are just an intermediary.
direct tax OTOH, is shown in p&l because it there is PBT>tax>PAT.
This will be watered down in every way imaginable, escpecially the usual suspects like Malta with a straight up fraudluently advertised 30+ % corporate tax rate ,but they "refund" you everything but 5%, making it an effective 5% tax rate. There is no way Malta will play along, it is a small state abusing all the EU benefits for nefarious purposes and never contributing anything useful. This is just an example, there…
Earlier quoted context omitted.
Then where do we get the money to pay for things like the justice system, law enforcement, national infrastructure, unemployment benefits, healthcare, pensions, customs, diplomats,...? Switch to a system where the government owns everything and gives people what they need if they work properly?
Inflationary/deficit spending. The MMT argument for taxation is that it's necessary to encourage demand for a currency, thus making it more valuable. But there's no fundamental reason that a government which controls its own currency must collect taxes to pay for various services. Congress could pay state and local governments directly each year. If you're willing to throw away some property rights, then state and lo…
This is what people forget about (especially tech minded people), when they think up new systems of taxation that would be more fair and effective: Any fair and effective tax would destroy the currency, since people and businesses could easily pay their share and then instantly convert their remaining wealth into non-fiat assets, or even safer fiat assets. In order to prop up the value of the fiat currency, the tax system needs to be extremely bureaucratic and reach into every and any kind of economic activity imaginable. That way there is a constant need for businesses to keep that fiat on hand and do their accounting with that fiat.
Earlier quoted context omitted.
Is this a tax on profits? If so, I worry it will remain weak to hollywood-accounting attacks: it's easy to spend money until there are no 'profits'. I'd really love to see progressive taxation of corporate revenue: the bigger a company is the higher the tax rate. Huge corporations benefit from economies of scale, so there is an incentive for power concentration. This power concentration is bad for society: it deliver…
Great way to kill off low margin important industries like steel