5 ms·
A tax on earnings? Do you mean revenue? I think that's a bit insane and lot's of business wouldn't be able to survive. If I buy something for $100 and sell it
by dalore 9y ago
A tax on earnings? Do you mean revenue?
I think that's a bit insane and lot's of business wouldn't be able to survive. If I buy something for $100 and sell it for $110 I now have to pay tax on the $110 amount rather then the $10 amount, increasing my tax tremendously.
For businesses with lot's of inventory that would be murder.
- gwenzek 9y agoI think it would be the only solution, because it will always be easier to manipulate your benefits than earnings. Although we could imagine something more complex: pay taxes on (revenue - expenses to compagnies that also pay taxes). So now if you buy a product $100 to a company paying 25% taxes and sell it $110, you pay taxes on the $10, but if you buy your product to a company in some island, you pay taxes on the $110. Smarter: if you buy to a company that pays a 20% tax while in your country you should pay a 30% tax, then you pay taxes on ($110 - $100*(30%-20%) = $20). Everything get more complex but it's just a bit more CPU time.
- chx 9y agoWherever this is implemented it's an option. It's never mandatory. There are tons of knowledge based operations where expenses are way too few. Obviously if you are a traditional buy stuff, add value, sell stuff business then you want to bother with bookkeeping sure.