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So, long term, every sizable company moves or merges to get a preferred tax rate, while smaller companies who don't have the clout to stiff their local tax base
by spacemanmatt 11y ago
So, long term, every sizable company moves or merges to get a preferred tax rate, while smaller companies who don't have the clout to stiff their local tax base pay the full rate? I wonder how this doesn't add up to a competitive disadvantage? Couldn't small business owners do something collectively about this screwjob?
- malchow 11y agoWell, they could just use democratic participation to support, you know, low taxes and regulations across the board.
- spacemanmatt 11y agoI don't know what really constitutes low or high taxation for this purpose, but I am only suggesting that businesses pay the same rates rather than using their wealth as a lever to harvest services from community at a preferential rate.
- jessaustin 11y agoSmall firms can still compete due to the crushing inefficiencies inherent in large firms. (In certain types of manufacturing, there are "economies of scale". That is irrelevant to this discussion.) Anyone who has worked at a large firm has seen the stacks of deadwood. Not much of that in firms directly managed by their owners! By consistently increasing the tax and regulatory advantages for large firms, society is effectively paying for their inefficiencies. That society "chooses" actions contrary to its interests is an indictment of the political process.
- spacemanmatt 11y agoYeah, I can't really get on board with rewarding large firms for their inefficiency.