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The EU's proposal isn't the best, but it'll hopefully spur more debate and shake us out of our current local optima, where corporate taxes for multi-national co
by zhyder 9y ago
The EU's proposal isn't the best, but it'll hopefully spur more debate and shake us out of our current local optima, where corporate taxes for multi-national corporations are just odd. How about this proposal: tax company on a fraction of global profits, where the fraction is the fraction of revenue that was attributable [1] to the EU?
[1] - Different ways of determining attribution, but simplest is based on billing address of the customer making purchases, including purchasing ads
- patall 9y agoBut it goes even further. In Germany, due to the former divide of the country, lots of big companies like Siemens or Osram have left the state where they were founded and moved to somewhere else. Because corporate tax is paid on a federal state level this means to now many more of companies pay their taxes for example in Bavaria and less so in for example Berlin. So in theory you would also need to have companies pay money on a federal state level (or be distributed somehow "equally" by a central government). In Germany we have whats called a "Länderfinanzausgleich" that redistributes some of the money between states even though that is highly controversial.