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The grandparent referred to tax revenue as a percentage of GDP, which is a measure designed to compare the tax burden across countries without having to delve i
by sjy 10y ago
The grandparent referred to tax revenue as a percentage of GDP, which is a measure designed to compare the tax burden across countries without having to delve into the various ways of measuring income, applying tax credits, and balancing the tax base across income, consumption and capital. You just look at the total tax collected and divide it by GDP. Your employment in China didn't contribute to US tax revenues or (directly) to US GDP, so it is ignored.
- seanmcdirmid 10y agoHow do they estimate the domestic GDP contribution of a company to then compute its effective tax rate? Or are they just taking total GDP divided by total tax collected for an overall tax burden? In that case, do these numbers say anything specifically about corporate taxation at all?
- sjy 10y agoThey don't; yes; no.