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The core problem with this scheme is one that's endemic to this sort of legislation. It's a basic assumption that economic interactions are all ultimately zero

by karzeem 17y ago

The core problem with this scheme is one that's endemic to this sort of legislation. It's a basic assumption that economic interactions are all ultimately zero-sum, which is simply untrue. The idea that Google (or anyone else) must necessarily derive its success from somehow, somewhere screwing people denies the fact that the healthiest economies are packed with non-zero-sum interactions.

mtkd 17y ago
In Europe there is, due to the falling tax revenues, a debate about who should now carry the burden - which is temporarily being placed on high earners but that will ultimately reduce revenues even further as they flee to more accommodating jurisdictions. It is an anomaly (in European eyes) that the most profitable businesses, particularly overseas technology businesses, are paying little or no tax currently. I suspect these companies are going to become a target for tax on both sides of the Atlantic over the next two years as governments try to reduce deficits - there are not many other sectors making profit right now.
joubert 17y ago
Taxation is also a tool to shape behavior.
- cwan 17y ago
  Not sure how this relates to what karzeem has said. You're right, taxation can shape behaviour. So what do you suppose it's saying here? Let's tax and discourage a productive part of society - or at least a part that helps people get things done faster to subsidize an industry (that's already being protected and promoted by government) that people are not interested in enough to actually support with their own money? Let's also not forget Quaero that the French tried to create as a counterbalance to supposedly American centric search for a total estimated amount of 293M Euros over 5 years! If the French government was that concerned about certain favored industries, why not just put their money there?
  - joubert 17y ago
    I simply said that because he said the motivation from this proposed tax stems from the misbelief of the zero sum game in wealth creation. However, from the article it seems it is more a way to to stimulate certain behavior (i.e. cultural developments).

by karzeem 17y ago

mtkd 17y ago

In Europe there is, due to the falling tax revenues, a debate about who should now carry the burden - which is temporarily being placed on high earners but that will ultimately reduce revenues even further as they flee to more accommodating jurisdictions. It is an anomaly (in European eyes) that the most profitable businesses, particularly overseas technology businesses, are paying little or no tax currently. I suspect these companies are going to become a target for tax on both sides of the Atlantic over the next two years as governments try to reduce deficits - there are not many other sectors making profit right now.

joubert 17y ago

Taxation is also a tool to shape behavior.

cwan 17y ago
Not sure how this relates to what karzeem has said. You're right, taxation can shape behaviour. So what do you suppose it's saying here? Let's tax and discourage a productive part of society - or at least a part that helps people get things done faster to subsidize an industry (that's already being protected and promoted by government) that people are not interested in enough to actually support with their own money? Let's also not forget Quaero that the French tried to create as a counterbalance to supposedly American centric search for a total estimated amount of 293M Euros over 5 years! If the French government was that concerned about certain favored industries, why not just put their money there?
- joubert 17y ago
  I simply said that because he said the motivation from this proposed tax stems from the misbelief of the zero sum game in wealth creation. However, from the article it seems it is more a way to to stimulate certain behavior (i.e. cultural developments).