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Isn't that what the VAT is for? Honestly asking because US states fall all over themselves to give tax breaks to companies all the time. Hell, even individual

Isn't that what the VAT is for? Honestly asking because US states fall all over themselves to give tax breaks to companies all the time. Hell, even individual cities compete with each other using tax breaks to attract employers. I couldn't even imagine the federal government stepping in and forcing a state to collect more in taxes "to encourage competition".

nikanj 9y ago
VAT only applies to consumers, not businesses. To be fair, that seems to be where our corporate tax system is headed anyway: zero rating for the companies, and consumers pay all the taxes.
- jnordwick 9y ago
  Corporations don't pay taxes in any meanings sense anyways. Individuals always pay for taxes. Owners (lower profits), employees (lower wages and fewer jobs), and consumers (high prices and fewer products) all split the tax burden imposed on a firm.
cc81 9y ago
The federal government steps in and collects taxes from the corporations directly instead, right?
- UncleEntity 9y ago
  Ah, ok, that explains all the squabbling -- the countries collect the taxes and then pay into the EU superstate. One country doesn't want another to have a comparative advantage so they sue each other in the EU courts to force them to collect "their fair share" from the evil tax-dodging corporations. Theater of the absurd if you ask me but who am I to judge...
  - cc81 9y ago
    To get access to the huge US market a corporation must pay federal tax. A huge Chinese corporation is not able to to tell the states that if someone lets them avoid federal tax then the US headquarters will be built in their state. This is advantageous for all states. The EU does not have something like that but they are able to say that while members can set their own tax code they cannot give preferential treatment to specific companies partly to avoid the scenario above. This forces them at least to pay the correct taxes in the little country they set up in in order to get access to the large countries.

nikanj 9y ago

VAT only applies to consumers, not businesses. To be fair, that seems to be where our corporate tax system is headed anyway: zero rating for the companies, and consumers pay all the taxes.

jnordwick 9y ago
Corporations don't pay taxes in any meanings sense anyways. Individuals always pay for taxes. Owners (lower profits), employees (lower wages and fewer jobs), and consumers (high prices and fewer products) all split the tax burden imposed on a firm.

cc81 9y ago

The federal government steps in and collects taxes from the corporations directly instead, right?

UncleEntity 9y ago
Ah, ok, that explains all the squabbling -- the countries collect the taxes and then pay into the EU superstate. One country doesn't want another to have a comparative advantage so they sue each other in the EU courts to force them to collect "their fair share" from the evil tax-dodging corporations. Theater of the absurd if you ask me but who am I to judge...
- cc81 9y ago
  To get access to the huge US market a corporation must pay federal tax. A huge Chinese corporation is not able to to tell the states that if someone lets them avoid federal tax then the US headquarters will be built in their state. This is advantageous for all states. The EU does not have something like that but they are able to say that while members can set their own tax code they cannot give preferential treatment to specific companies partly to avoid the scenario above. This forces them at least to pay the correct taxes in the little country they set up in in order to get access to the large countries.