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A tax on revenue is very different than a tax on profit.
by eanzenberg 7y ago
A tax on revenue is very different than a tax on profit.
- opportune 7y agoA tax on revenue makes sense in a very high margin business like software
- eanzenberg 7y agoTaxes on revenue disincentivize spend on R&D
- alkonaut 7y agoA tax on profit is almost useless in this case because most internet giants would buy “services” or pay “royalties” to countries with zero taxes, to keep profits zero whereever there are nonzero taxes. A reasonable middle ground would be to tax google on their central profits and take a cut based on the fraction of business done in France. That way no tax would be owed if google makes a loss, regardless of French revenue.
- eanzenberg 7y agoYou can't just tax a company. Well, you could, but then you'd be a Libyan dictator or something. Tax on revenue disincentivizes progress and R&D.
- alkonaut 7y ago> You can’t tax a company Not sure I follow