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This is not so much about the interaction between the two parties, but aboutjust taxes. if companies can go wherever taxes are the lowest, without impact on pr
by nielsole 9y ago
This is not so much about the interaction between the two parties, but aboutjust taxes.
if companies can go wherever taxes are the lowest, without impact on profits, there will be a race to the bottom in corporate tax laws.
In order to have an optimal amount of taxes for tech companies that can move at a whim, you need some sorts of capital controls that prevent that.
I find a sales tax to be a very lean approach.
- TimPC 9y agoSales tax might be lean in 1 jurisdiction but if you make companies pay it globally it's not. Huge amounts of complexity and many many jurisdictions. In some countries, even cities have sales tax not just counties or states. It would be a multi-million dollar project for a small company that does business worldwide online to figure out how and what to collect and pay in every jurisdiction it's customers are in and then file and pay the taxes to each entity.