4 ms·
I take your point, but I think you've over simplified the situation. For example, in days gone by, the UK tax system happily forced retailers to pay vast amount
by abainbridge 8y ago
I take your point, but I think you've over simplified the situation. For example, in days gone by, the UK tax system happily forced retailers to pay vast amounts of tax ("business rates") based on the shops they occupied in town centres. This was part of the total tax burned on retailers. Online retailers avoid this tax and thus could be considered to have an unfair advantage over bricks-and-mortar stores.
- racingmars 8y agoYes, excellent point. It's not correct to say a company is more "efficient" in the market simply because it can undercut another company due to being taxed differently. If the global companies are able to still compete effectively while paying the same taxes, then they are still welcome to displace local businesses.
- nine_k 8y agoCan any advantage even be fair, under such an angle? If it's legal, it's "fair". Hence, laws are being updated to level the playing field, that is, to remove the advantage which to the lawmakers looks excessive (as in making traditional industries fail) and exploitable to the benefit of the local economy (they will pay because it's still profitable).