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> Apple sells globally, should Apple also pay for the welfare of the countries where it sells its product? Yes. And they do in countries which charge VAT. They

by pg314 8y ago

> Apple sells globally, should Apple also pay for the welfare of the countries where it sells its product? Yes. And they do in countries which charge VAT. They should arguably be taxed on the profits they make in the territories they sell in, but that is much harder to do in practice without international cooperation. > Some part of which flows to investors who purchase securities. Capital gains and dividends are taxed. Capital gains are only taxed when they are realized. E.g. Warren Buffett's Berkshire Hathaway hasn't paid a dime in taxes on the 15.4 billion dollar capital gains on its 16.7 billion dollar stake in Coca Cola (a position he initiated in 1987). Since Buffett has indicated he isn't planning on selling Coca Cola ever, those capital gains won't ever be taxed. > Companies can't earn record profits without government running deficit (by healthcare/infra expenditure) and without people running out of savings (by spending on the goods and services being produced) Of course they can: by becoming more efficient or by growing GDP. > Part of the value produced will be taxed in the US while the individuals and governments all over the world run out of saving and run into deficits respectively. All that flows to the US. Stopping this is much worse for the US. Nonsense. If you had looked at the OECD government deficit data [1], you would have known that the US is running one of the biggest deficits in terms of % of GDP (4.94% in 2016 vs 1.546% for the EU as a whole, or a surplus of 1% for Germany). Similarly, personal savings are 2.8% in the US [2] vs 10% in the EU [3] or 50% in Japan [4]. Of course, this has little to do with the balance of trade, as you seem to be thinking. The US runs a trade deficit: it imports more than it exports. This is offset by capital inflows from abroad, meaning that a bigger and bigger share of the ownership of productive assets are being owned by foreigners. Returns on those assets will accrue to foreign investors. [1] https://data.oecd.org/gga/general-government-deficit.htm https://data.oecd.org/gga/general-government-deficit.htm [2] https://tradingeconomics.com/united-states/indicators https://tradingeconomics.com/united-states/indicators [3] https://tradingeconomics.com/european-union/indicators https://tradingeconomics.com/european-union/indicators [4] https://tradingeconomics.com/japan/indicators https://tradingeconomics.com/japan/indicators

stealthmodeclan 8y ago
Yes. And they do in countries which charge VAT. They should arguably be taxed on the profits they make in the territories they sell in, but that is much harder to do in practice without international cooperation. GP mentioned the Corporate Tax. VAT is an indirect tax. It's not a tax on profit but consumption, often paid by individuals. Supplies used as input by companies are vat exempt. Capital gains are only taxed when they are realized. E.g. Warren Buffett's Berkshire Hathaway hasn't paid a dime in taxes on the 15.4 billion dollar capital gains on its 16.7 billion dollar stake in Coca Cola (a position he initiated in 1987). Since Buffett has indicated he isn't planning on selling Coca Cola ever, those capital gains won't ever be taxed. I also mentioned taxes on dividends. Buffet is not the only one operating in market. Of course they can: by becoming more efficient or by growing GDP. And how can they grow GDP or become more efficient without investment? Where does that money come from if not from the individuals (buying product/service) and government (spending on infra/healthcare) Nonsense. If you had looked at the OECD government deficit data [1], you would have known that the US is running one of the biggest deficits in terms of % of GDP (4.94% in 2016 vs 1.546% for the EU as a whole, or a surplus of 1% for Germany). Similarly, personal savings are 2.8% in the US [2] vs 10% in the EU [3] or 50% in Japan [4] Not sure what you are trying to prove by this random data. US is the largest Foreign Direct receipent. Yes, Europe the largest buyer of the US securities. As US become more attractive to the foreign investors. The trade deficit will increase and will be financed by the foreign investors. Where is the problem?

by pg314 8y ago

stealthmodeclan 8y ago

Yes. And they do in countries which charge VAT. They should arguably be taxed on the profits they make in the territories they sell in, but that is much harder to do in practice without international cooperation. GP mentioned the Corporate Tax. VAT is an indirect tax. It's not a tax on profit but consumption, often paid by individuals. Supplies used as input by companies are vat exempt. Capital gains are only taxed when they are realized. E.g. Warren Buffett's Berkshire Hathaway hasn't paid a dime in taxes on the 15.4 billion dollar capital gains on its 16.7 billion dollar stake in Coca Cola (a position he initiated in 1987). Since Buffett has indicated he isn't planning on selling Coca Cola ever, those capital gains won't ever be taxed. I also mentioned taxes on dividends. Buffet is not the only one operating in market. Of course they can: by becoming more efficient or by growing GDP. And how can they grow GDP or become more efficient without investment? Where does that money come from if not from the individuals (buying product/service) and government (spending on infra/healthcare) Nonsense. If you had looked at the OECD government deficit data [1], you would have known that the US is running one of the biggest deficits in terms of % of GDP (4.94% in 2016 vs 1.546% for the EU as a whole, or a surplus of 1% for Germany). Similarly, personal savings are 2.8% in the US [2] vs 10% in the EU [3] or 50% in Japan [4] Not sure what you are trying to prove by this random data. US is the largest Foreign Direct receipent. Yes, Europe the largest buyer of the US securities. As US become more attractive to the foreign investors. The trade deficit will increase and will be financed by the foreign investors. Where is the problem?