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Are you arguing that a 100% tax on Apple profits wouldn’t impact their competitiveness? How would they build new factories, develop new products or hire more wo

Are you arguing that a 100% tax on Apple profits wouldn’t impact their competitiveness? How would they build new factories, develop new products or hire more workers without reinvesting profits into their company? Why wouldn’t a company that can raise more money from capital markets and that has the support of its government quickly overtake Apple’s position?

crdoconnor 9y ago
>Are you arguing that a 100% tax on Apple profits wouldn’t impact their competitiveness? Pretty much. It would render their stock worthless, but there's nothing about a 100% tax on realized profits from preventing a business from operating exactly as before. >How would they build new factories, develop new products or hire more workers With relative ease. Corporation tax is paid only on realized profits. Reinvesting earnings has often been a way of avoiding paying it at all, which is actually supposed to be a feature.
- landryraccoon 9y ago
  > With relative ease. Yeah, but why would they? Why would any employee or manager have an incentive to do extra work to do so? Where do they get the money from, and more importantly, why would they reinvest the money if there is absolutely no gain to doing so, instead of paying it out to executives and shareholders and just cashing out? > Corporation tax is paid only on realized profits. I’m not sure you know what this means. A new factory is an asset, taxes are definitely paid on it if Apple buys a new factory with retained earnings. Are you claiming that a corporation can gain new long term assets without paying any tax unless investors put more money into the business or banks loan them money? I'm sorry if I sound shocked, but I actually file corporation taxes for a small business. Corporate profits are taxable whether they get paid out to shareholders or reinvested into the company.
  - crdoconnor 9y ago
    >Yeah, but why would they? Why would any employee or manager have an incentive to do extra work to do so? Coz they get paid. >why would they reinvest the money if there is absolutely no gain to doing so, instead of paying it out to executives It's true that with a higher profit tax you'd may see execs paying themselves higher and higher salaries and shareholders would be less inclined to prevent it. >I’m not sure you know what this means. A new factory is an asset, taxes are definitely paid on it if Apple buys a new factory with retained earnings. Are you claiming that a corporation can gain new long term assets without paying any tax unless investors put more money into the business or banks loan them money? >I'm sorry if I sound shocked, but I actually file corporation taxes for a small business. So do I. Actually, the year before last I personally paid more in corporation tax than Facebook did (they paid £4,000). I'm pretty sure they were taking neither investment nor loans.
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crdoconnor 9y ago

>Are you arguing that a 100% tax on Apple profits wouldn’t impact their competitiveness? Pretty much. It would render their stock worthless, but there's nothing about a 100% tax on realized profits from preventing a business from operating exactly as before. >How would they build new factories, develop new products or hire more workers With relative ease. Corporation tax is paid only on realized profits. Reinvesting earnings has often been a way of avoiding paying it at all, which is actually supposed to be a feature.

landryraccoon 9y ago
> With relative ease. Yeah, but why would they? Why would any employee or manager have an incentive to do extra work to do so? Where do they get the money from, and more importantly, why would they reinvest the money if there is absolutely no gain to doing so, instead of paying it out to executives and shareholders and just cashing out? > Corporation tax is paid only on realized profits. I’m not sure you know what this means. A new factory is an asset, taxes are definitely paid on it if Apple buys a new factory with retained earnings. Are you claiming that a corporation can gain new long term assets without paying any tax unless investors put more money into the business or banks loan them money? I'm sorry if I sound shocked, but I actually file corporation taxes for a small business. Corporate profits are taxable whether they get paid out to shareholders or reinvested into the company.
- crdoconnor 9y ago
  >Yeah, but why would they? Why would any employee or manager have an incentive to do extra work to do so? Coz they get paid. >why would they reinvest the money if there is absolutely no gain to doing so, instead of paying it out to executives It's true that with a higher profit tax you'd may see execs paying themselves higher and higher salaries and shareholders would be less inclined to prevent it. >I’m not sure you know what this means. A new factory is an asset, taxes are definitely paid on it if Apple buys a new factory with retained earnings. Are you claiming that a corporation can gain new long term assets without paying any tax unless investors put more money into the business or banks loan them money? >I'm sorry if I sound shocked, but I actually file corporation taxes for a small business. So do I. Actually, the year before last I personally paid more in corporation tax than Facebook did (they paid £4,000). I'm pretty sure they were taking neither investment nor loans.
  - deleted 9y ago
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