4 ms·
I think domestic tax policy is fine. International tax policy is a mess. Currently, every country has a tax treaty with pretty much every other country - This m
by jondubois 10y ago
I think domestic tax policy is fine. International tax policy is a mess. Currently, every country has a tax treaty with pretty much every other country - This means that the number of unique international tax treaties is O(n^2) - So if you consider 100 countries which all have treaties with one anther, that represents maybe 10000 unique treaties (if you consider each direction as a separate treaty)... And each treaty is like 50 pages. That's a LOT of work - It is very easy to make mistakes or introduce intentional loopholes without being noticed.
If we had a computer program with 1 million pages' worth of code (with no source control and a highly fragmented Q/A process) then your chance of your program being buggy is extremely high.
It's baffling that governments thought that it would be better to write up n^2 unique treaties between each other instead of having a single treaty (or limited set of treaties) that applies to all (a la Kyoto Protocol or Geneva Conventions)! This is such an obviously bad idea, one has to think that it was done intentionally... Probably the result of heavy corporate lobbying.
At least now some middle-class workers are able to benefit from this mess (before remote work was possible, pretty much only corporations and wealthy people could leverage this). I've heard about regular working-class people who live in Malta and work remotely for US companies and pay almost no tax - This is because of loopholes in that specific treaty. There must be loopholes all over the place.
Right now the system is biased towards helping accountants make big bucks.