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Google et al: (smugly) we comply strictly with the letter of the law, if you want us to pay more change the law Government: hold my beer Google: it’s not fair

by gaius 9y ago

Google et al: (smugly) we comply strictly with the letter of the law, if you want us to pay more change the law Government: hold my beer Google: it’s not fair!!! (fx: bitter tears) Let’s charge them the back taxes for all their evading years too

adventured 9y ago
Avoidance is not evasion, so your back tax / theft premise will fall apart there. It would never survive a legal challenge. This EU fake tax is actually a new tariff. The EU has a $100 billion net trade surplus with the US. Germany - by far the largest economy in the EU - in particular has an extreme trade imbalance with the US in relation to the size of the trade between the two countries. The German trade deficit is so extreme, it's larger than the total sum of all exports from the US to Germany in fact. The US is the least trade dependent developed nation on earth: https://i.imgur.com/q7TrEZF.jpg https://i.imgur.com/q7TrEZF.jpg Every nation that has a large surplus with the US, that decides to pick a trade fight, will be guaranteed to lose a lot more than the US does accordingly. The US for example imports three times from China, what China does from the US. A trade war with China is ideal for the same reason it's going to be ideal with Germany and the EU broadly. In a perfect world, the US will import dramatically fewer consumer goods from China, Germany and overall in general. Instead the US should consume less from abroad and shift those resources to domestic capital formation and investment toward greater US production. That's further ideal at a time when automation gains will make it easier to reshore ever greater manufacturing. The vast US capabilities around manufacturing and energy, make the US uniquely positioned among major economies to not need very many outside nations.
- esarbe 9y ago
  It's pretty much obvious that the tax avoidance perpetuated by Google, Apple, Amazon and Microsoft is against the spirit of the (tax) law, even if it is not against the letter. But you are right; it would never stand a legal challenge. That's why there is this new tax. When you consider that companies like Apple, Amazon and Google - using these tax loopholes and sandwiches - get to pay a much lower tax rates that your local carpenter or grocery store, I don't see this as a new tariff, but as enforcement of an existing one. About the 'trade fights'; I think you really do underestimate the straits the U.S. is currently in. The only reason the U.S. can import as much as it is currently doing is because of the strength of the U.S. Dollar. The median inflation adjusted income in the U.S. has been sinking for three decades. Even more automated production will not produce purchase power, especially if the value of the Dollar suffers because of a trade conflict. Interested to hear your thoughts!

by gaius 9y ago

adventured 9y ago

Avoidance is not evasion, so your back tax / theft premise will fall apart there. It would never survive a legal challenge. This EU fake tax is actually a new tariff. The EU has a $100 billion net trade surplus with the US. Germany - by far the largest economy in the EU - in particular has an extreme trade imbalance with the US in relation to the size of the trade between the two countries. The German trade deficit is so extreme, it's larger than the total sum of all exports from the US to Germany in fact. The US is the least trade dependent developed nation on earth: https://i.imgur.com/q7TrEZF.jpg https://i.imgur.com/q7TrEZF.jpg Every nation that has a large surplus with the US, that decides to pick a trade fight, will be guaranteed to lose a lot more than the US does accordingly. The US for example imports three times from China, what China does from the US. A trade war with China is ideal for the same reason it's going to be ideal with Germany and the EU broadly. In a perfect world, the US will import dramatically fewer consumer goods from China, Germany and overall in general. Instead the US should consume less from abroad and shift those resources to domestic capital formation and investment toward greater US production. That's further ideal at a time when automation gains will make it easier to reshore ever greater manufacturing. The vast US capabilities around manufacturing and energy, make the US uniquely positioned among major economies to not need very many outside nations.

esarbe 9y ago
It's pretty much obvious that the tax avoidance perpetuated by Google, Apple, Amazon and Microsoft is against the spirit of the (tax) law, even if it is not against the letter. But you are right; it would never stand a legal challenge. That's why there is this new tax. When you consider that companies like Apple, Amazon and Google - using these tax loopholes and sandwiches - get to pay a much lower tax rates that your local carpenter or grocery store, I don't see this as a new tariff, but as enforcement of an existing one. About the 'trade fights'; I think you really do underestimate the straits the U.S. is currently in. The only reason the U.S. can import as much as it is currently doing is because of the strength of the U.S. Dollar. The median inflation adjusted income in the U.S. has been sinking for three decades. Even more automated production will not produce purchase power, especially if the value of the Dollar suffers because of a trade conflict. Interested to hear your thoughts!