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The solution is simple. Stop taxing profits. Tax consumption. Defining "profit" is nigh impossible. Starbucks is headquarted in the United States. Their resear
by forrestthewoods 10y ago
The solution is simple. Stop taxing profits. Tax consumption. Defining "profit" is nigh impossible.
Starbucks is headquarted in the United States. Their research in Canada. Their beans from Columbia. European distribution is out of Germany. London finances new franchises. A location in France sells a latte for 4€.
How much of that 4€ is profit and how big of a slice does each country get? Because each country has a very fair claim to say that they deserve a slice of the profit pie.
It's impossible. There is no single answer. There is no moral system that precisely describe to which countries go which dollar.
- dragandj 10y agoBut the consumption is already taxed in Europe: out of that 4 euros, 80 cents goes to France immediately in the form of VAT.
- forrestthewoods 10y agoThen they shouldn't complain about Starbucks paying too little corporate tax. If they want more then raise VAT. It's nigh unavoidable.
- tormeh 10y agoVAT is not progressive, which is why many don't like it.
- marcosdumay 10y agoIn other words, use VATs, not income taxes... It seems that every country that use them decide to apply them in addition to income taxes. And that means the VAT is never big enough, and there is no political climate to gradually replace one with the other. In theory, a VAT, land taxes, and universal income should form the perfect taxation system together.
- hvidgaard 10y agoActually removing profit tax and simply add VAT to the final consumer sale seems like a decent starting point for simplifying the system and prevent tax evasion.