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What leverage does the EU believe it has here? Tech companies only put branches in Ireland, Netherlands, etc because of the US tax code. Another jurisdiction wi
by sjtgraham 9y ago
What leverage does the EU believe it has here? Tech companies only put branches in Ireland, Netherlands, etc because of the US tax code. Another jurisdiction will just compete on price and win the business. Jobs will leave (high paying ones at that) the EU, income tax receipts will be hit, unemployment up, wages down. It's just suicide. Corporations and the super-rich are the leading edge of tax arbitrage. Like it or not this is the future of tax for everyone, it's just a question of when technology enables you to do your job remotely.
- bluecalm 9y agoIf they want to sell in European countries they will pay tax on revenue there. They can move manufacturing to the Moon and report profits to authorities on Mars while buying licensing from a company outside the Milky Way and we will still tax them on things they sell here. That's possible because we just need to count their sells on our turf. We don't need a tax treaty with Martians to monitor their books as we do now.
- sjtgraham 9y agoIf there is no nexus, there is no justification to tax. Similarly, if you a widget online from abroad the widget vendor doesn't pay tax where you're domiciled. The best the government can do are import tariffs, hard to see how that works for services IMO.