4 ms·

> The solution is quite simple: get rid of corporate income tax, focus on consumption taxes. I feel the better solution is a global tax treaty. Where WTO natio

> The solution is quite simple: get rid of corporate income tax, focus on consumption taxes. I feel the better solution is a global tax treaty. Where WTO nations or appropriate group all agree to have a minimum corporate tax rate if they want to trade. This will stop any race to the bottom by countries trying to attract companies via a double Irish type method and remove the incentive of corporations for this. All while allowing taxes to be collected at the corporate level in a global economy. The problem of removing corporate tax is corporate vehicles will become a holding vessel for profit hoarding. E.g for someone like me that likes to save rather than pay my tax bill each year on investment earnings I'll set up a company and put all my savings into this. Each year these invest profits will be retained tax free as I continue to save. This will pull massive tax revenue from the economy as people do this at scale. For this reason shifting to consumption tax only will just open another tax avoidance option.

bluecalm 10y ago
I don't like it. There are too may countries, local governments with various degree of corruption. Legislation with various kind of rebates and laws which allow you to deduct all kind of different things. Global treaties like that can't work in a world with so many realities and cultures. >>The problem of removing corporate tax is corporate vehicles will become a holding vessel for profit hoarding. I don't mind it. Sooner or later they spent the money. If we have inflation at some decent level that will serve as a tax on hoarding. >>E.g for someone like me that likes to save rather than pay my tax bill each year on investment earnings I'll set up a company and put all my savings into this. Each year these invest profits will be retained tax free as I continue to save. I don't see the problem. It's a basic arithmetic property of multiplication that it doesn't matter if you save more first and then are taxed at 23% (or w/e the rate) or are taxed first and save later. If you are buying assets then some other people get the money to spend. >>This will pull massive tax revenue from the economy as people do this at scale I think encouraging savings is good, it stops over the top consumption and allows building capital to finance new ventures and therefore allow for faster progress of our civilization. If you never spend the money it's great for everyone (you provided free services and didn't want anything in return), if you spend it: you are taxed. If you buy some assets you will be taxed on that and some other people will have your money to spend and be taxed there. I just don't see it as a problem as long as there is at least minimal inflation (aka tax on keeping cash).

bluecalm 10y ago

I don't like it. There are too may countries, local governments with various degree of corruption. Legislation with various kind of rebates and laws which allow you to deduct all kind of different things. Global treaties like that can't work in a world with so many realities and cultures. >>The problem of removing corporate tax is corporate vehicles will become a holding vessel for profit hoarding. I don't mind it. Sooner or later they spent the money. If we have inflation at some decent level that will serve as a tax on hoarding. >>E.g for someone like me that likes to save rather than pay my tax bill each year on investment earnings I'll set up a company and put all my savings into this. Each year these invest profits will be retained tax free as I continue to save. I don't see the problem. It's a basic arithmetic property of multiplication that it doesn't matter if you save more first and then are taxed at 23% (or w/e the rate) or are taxed first and save later. If you are buying assets then some other people get the money to spend. >>This will pull massive tax revenue from the economy as people do this at scale I think encouraging savings is good, it stops over the top consumption and allows building capital to finance new ventures and therefore allow for faster progress of our civilization. If you never spend the money it's great for everyone (you provided free services and didn't want anything in return), if you spend it: you are taxed. If you buy some assets you will be taxed on that and some other people will have your money to spend and be taxed there. I just don't see it as a problem as long as there is at least minimal inflation (aka tax on keeping cash).