The missing profits of nations
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The missing profits of nations
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Re: The missing profits of nations
#2Editorializing titles like this is against HN's guidelines (https://news.ycombinator.com/newsguidelines.html). When accounts do this, they eventually lose submission privileges. If you'd read the guidelines and follow them when posting here, we'd appreciate it.
(Submitted title was 'Don't be taxpayer – Google Alphabet made $19.2B in revenue in Bermuda'.)
Re: The missing profits of nations
#3And this is where the main issue is. Local newspapers, local advertising companies, global search companies that could have been; all of them are competing with Google on vastly unfair terms. Google is not paying tax. The others have to.
Re: The missing profits of nations
#4Large companies should be taxed where the value is created. And because that’s hard to measure, cost should be used instead. So if Google spends 60% of its budget in the US, 60% of its profits should also be attributed to the US.
(Side note: the alternative of taxing profits where the revenue is generated does not make much sense as this would be equivalent to a sales tax.)
Re: The missing profits of nations
#5This is disgusting. Literally stealing from the pockets of the american people. It doesnt matter that its technically legal. This news should bring outrage.
Re: The missing profits of nations
#6Editorializing titles like this is against HN's guidelines ( https://news.ycombinator.com/newsguidelines.html ). When accounts do this, they eventually lose submission privileges. If you'd read the guidelines and follow them when posting here, we'd appreciate it. (Submitted title was 'Don't be taxpayer – Google Alphabet made $19.2B in revenue in Bermuda'.)
Ok. Sorry.
Re: The missing profits of nations
#7Large companies should be taxed where the value is created. And because that’s hard to measure, cost should be used instead. So if Google spends 60% of its budget in the US, 60% of its profits should also be attributed to the US. (Side note: the alternative of taxing profits where the revenue is generated does not make much sense as this would be equivalent to a sales tax.)
All large multi-national corporations do this. For example, NYT did a piece about Apple doing it[0]. Wikipedia has a list of companies that used the Double Irish setup[1]. The double-irish has been closed (via regulation) and most companies will be moving off of it by 2020.
[0] https://www.nytimes.com/2017/11/06/world/apple-taxes-jersey....
[1] https://en.wikipedia.org/wiki/Double_Irish_arrangement#US_mu...
Re: The missing profits of nations
#8Large companies should be taxed where the value is created. And because that’s hard to measure, cost should be used instead. So if Google spends 60% of its budget in the US, 60% of its profits should also be attributed to the US. (Side note: the alternative of taxing profits where the revenue is generated does not make much sense as this would be equivalent to a sales tax.)
Does that risk pushing their spending to low tax jurisdictions?
Re: The missing profits of nations
#9Large companies should be taxed where the value is created. And because that’s hard to measure, cost should be used instead. So if Google spends 60% of its budget in the US, 60% of its profits should also be attributed to the US. (Side note: the alternative of taxing profits where the revenue is generated does not make much sense as this would be equivalent to a sales tax.)
Does that risk pushing their spending to low tax jurisdictions?
Probably some amount but I reason this would be much harder. You must pay workers where they live and buy resources from where they are produced. It's easier to offshore a made up entity like a corporation than a bunch of people and their hardware.
Re: The missing profits of nations
#10Large companies should be taxed where the value is created. And because that’s hard to measure, cost should be used instead. So if Google spends 60% of its budget in the US, 60% of its profits should also be attributed to the US. (Side note: the alternative of taxing profits where the revenue is generated does not make much sense as this would be equivalent to a sales tax.)
Nothing wrong with a sales tax being part of a possible solution.