4 ms·

This is not a solution, and it is not clever but stupid. If someone in power is so stupid to do it, companies will stop operating on their country but the worl

by pipio21 10y ago

This is not a solution, and it is not clever but stupid. If someone in power is so stupid to do it, companies will stop operating on their country but the world will continue going around and tax heavens will continue existing. Governments are bankrupt totally now, expending way more that what they earn, with 5% deficits or more and want to raise more and more money in taxes, but there is a limit on what they could extract, as people can stop working if they become slaves.

mrweasel 10y ago
I honestly don't believe that a country would stop having companies, or not have access to certain products because of such a tax. Remember your country would have no corporate income tax, it's the consumers of your product who are effectively paying the tax. Only companies not making a profit would take issues with such a scheme. Take Q8, they own gas stations in Denmark. Apparently they've made no profit in Denmark, EVER. That is of cause a blatant lie. They've just moved the profit abroad. Taxing the revenue, directly at the pump, would either drive a lying company out and make room for more honest ones, or they would start paying their share. There's ALWAYS someone who see an opportunity. Coca Cola leaving because they refuse to pay your tax? Fine Pepsi will swoop in that same day. What you're suggestion is that companies will only ever operate in countries that makes it possible to be creative with taxes.
shkkmo 10y ago
Why would any business stop operating in a country when they can simply raise prices to cover the tax? Everyone else will have to raise prices as well so nobody would be at a competitive disadvantage.
- throwaway1974 10y ago
  Competition
hga 10y ago
If someone in power is so stupid to do it, companies will stop operating on their country It depends, for we have a state level test of this, Washington State and Boeing, which has a very boom and bust pattern of profitability. Of course, political muscle was used on them when they last tried to expand outside of the state, but I'm sure that initially, when the gross receipts tax was imposed, it just cost too much for them to move their factories elsewhere. Of course, this tax does nothing good for other companies that it hits (there's a lower threshold as I recall, otherwise few would ever start up a company in the state), that aren't so profitable.

by pipio21 10y ago

mrweasel 10y ago

I honestly don't believe that a country would stop having companies, or not have access to certain products because of such a tax. Remember your country would have no corporate income tax, it's the consumers of your product who are effectively paying the tax. Only companies not making a profit would take issues with such a scheme. Take Q8, they own gas stations in Denmark. Apparently they've made no profit in Denmark, EVER. That is of cause a blatant lie. They've just moved the profit abroad. Taxing the revenue, directly at the pump, would either drive a lying company out and make room for more honest ones, or they would start paying their share. There's ALWAYS someone who see an opportunity. Coca Cola leaving because they refuse to pay your tax? Fine Pepsi will swoop in that same day. What you're suggestion is that companies will only ever operate in countries that makes it possible to be creative with taxes.

shkkmo 10y ago

Why would any business stop operating in a country when they can simply raise prices to cover the tax? Everyone else will have to raise prices as well so nobody would be at a competitive disadvantage.

throwaway1974 10y ago
Competition

hga 10y ago

If someone in power is so stupid to do it, companies will stop operating on their country It depends, for we have a state level test of this, Washington State and Boeing, which has a very boom and bust pattern of profitability. Of course, political muscle was used on them when they last tried to expand outside of the state, but I'm sure that initially, when the gross receipts tax was imposed, it just cost too much for them to move their factories elsewhere. Of course, this tax does nothing good for other companies that it hits (there's a lower threshold as I recall, otherwise few would ever start up a company in the state), that aren't so profitable.