3 ms·

> If you can't get the state to stop engaging in this, how are you going to get them to pass a law against it? Or not repeal the law the minute they want to do

> If you can't get the state to stop engaging in this, how are you going to get them to pass a law against it? Or not repeal the law the minute they want to do it again? This stuff usually happens at the state or local level, so a federal law (not sure about the constitutionality of that) or constitutional law (or judicial interpretation) seems like the right place for it. Tax arbitrage is a problem, IMHO, and I do wish there were better ways to mitigate it. It does seem we're moving more towards a system with local taxes occur where the sales are made, and perhaps the same could be done with local income and business taxes. It would make things more complicated, but we have software and tax codes could also use some compensating simplification. IMHO, tax policy is part of the political system, and in the interests of democracy, the political systems shouldn't be made to compete with each other in exploitable ways.

AnthonyMouse 9y ago
> It does seem we're moving more towards a system with local taxes occur where the sales are made, and perhaps the same could be done with local income and business taxes. "Income tax where the sale is made" is VAT. And "business taxes" (meaning incorporation fees and the like) are stupid garbage that disproportionately impact small businesses, don't even generate that much revenue, and should just be eliminated entirely. But yes, VAT would work really well for this. Especially if there was a standardized way for internet retailers to remit it without having to register with every individual state and locality that each uses their own filing system. > IMHO, tax policy is part of the political system, and in the interests of democracy, the political systems shouldn't be made to compete with each other in exploitable ways. It's impossible to prevent this and still maintain any semblance of different states or countries. If states couldn't have different taxes then they would attract businesses by not spending the money on social programs and instead using it for infrastructure projects businesses like. If they weren't allowed to do that then they would still attract businesses with less stringent regulations. The only way states don't compete with each other is if they're all exactly the same. And they would never actually be on equal footing regardless. If everyone had to abide the same taxes, minimum wage laws and regulations there are in California then no one would ever set up shop in Arizona, much less Mexico or South Africa.

AnthonyMouse 9y ago

> It does seem we're moving more towards a system with local taxes occur where the sales are made, and perhaps the same could be done with local income and business taxes. "Income tax where the sale is made" is VAT. And "business taxes" (meaning incorporation fees and the like) are stupid garbage that disproportionately impact small businesses, don't even generate that much revenue, and should just be eliminated entirely. But yes, VAT would work really well for this. Especially if there was a standardized way for internet retailers to remit it without having to register with every individual state and locality that each uses their own filing system. > IMHO, tax policy is part of the political system, and in the interests of democracy, the political systems shouldn't be made to compete with each other in exploitable ways. It's impossible to prevent this and still maintain any semblance of different states or countries. If states couldn't have different taxes then they would attract businesses by not spending the money on social programs and instead using it for infrastructure projects businesses like. If they weren't allowed to do that then they would still attract businesses with less stringent regulations. The only way states don't compete with each other is if they're all exactly the same. And they would never actually be on equal footing regardless. If everyone had to abide the same taxes, minimum wage laws and regulations there are in California then no one would ever set up shop in Arizona, much less Mexico or South Africa.