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I fear that Mr. Krach does not understand corporation tax. Comparing profits from sales in a particular country to corporation tax paid in that country by a fo

I fear that Mr. Krach does not understand corporation tax. Comparing profits from sales in a particular country to corporation tax paid in that country by a foreign company makes absolutely no sense. Apple's tax avoidance schemes are in place to avoid US taxes, not German taxes or taxes elsewhere in the world outside the US. I think Mr. Krach is right that global corporations do not pay their fair share towards global infrastructure and education. But the reason for that is not tax avoidance. The reason is that corporation tax, as it is structured today, is unfit for porpose in a globalised economy. Corporation tax is based on the assumption that companies primarily use the public infrastructure of the country where they are incorporated. But for global corporations this assumption is incorrect. So Mr. Krach is barking up the wrong tree, unless his main concern is US tax take. He should call on politicians to change the way in which global corporations are taxed.

improbable22 9y ago
Yes to this: "corporation tax, as it is structured today, is unfit for purpose in a globalised economy". Where Apple sold its computers is well-defined, you can count each one and tax it. Where their employees work is also well-defined, they have desks, and beds. Where they made their profits simply isn't well-defined. How much was due to the software (California), the marketing (let's say London), the assembly (China), the logistics (in between)? These question don't have sharp answers. Sure, Apple's accounting guys write down some numbers. But once you attempt to tax them, you discover that they have great freedom in what column they write those numbers in. I increasingly think the correct corporate profit tax rate is zero. Tax the goods they sell. Tax the salaries they pay. Tax the capital gains when shareholders sell, if you must. These things all involve actual people and take place in particular countries. The rest is an abstraction.

improbable22 9y ago

Yes to this: "corporation tax, as it is structured today, is unfit for purpose in a globalised economy". Where Apple sold its computers is well-defined, you can count each one and tax it. Where their employees work is also well-defined, they have desks, and beds. Where they made their profits simply isn't well-defined. How much was due to the software (California), the marketing (let's say London), the assembly (China), the logistics (in between)? These question don't have sharp answers. Sure, Apple's accounting guys write down some numbers. But once you attempt to tax them, you discover that they have great freedom in what column they write those numbers in. I increasingly think the correct corporate profit tax rate is zero. Tax the goods they sell. Tax the salaries they pay. Tax the capital gains when shareholders sell, if you must. These things all involve actual people and take place in particular countries. The rest is an abstraction.