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Please don't confuse income taxes with taxes on profit. Income tax is like a tax on revenue - you pay it where you get it, you can't deduct costs. You can tax c

Please don't confuse income taxes with taxes on profit. Income tax is like a tax on revenue - you pay it where you get it, you can't deduct costs. You can tax corporations on revenue or you could tax consumption (by VAT or sells tax) and that wouldn't be evaded either. The problem is with taxing profits and elusive concept of "profits in specific market". The concept doesn't really makes much sense though. It also isn't a just concept if you think about it. Why should France (for example) get more tax just because Ireland made it possible to produce things cheaper? If they feel you should pay for access to the market tax that. It's really is not your business how much I spend in my country to produce goods I sell in yours. Trying to police that across borders, varying accounting regulations, labor laws etc. is just insanity.

mcv 7y ago
> "It's really is not your business how much I spend in my country to produce goods I sell in yours." That's exactly my point: you tax the economic activity only in your country: the revenue minus the profits in your country. What the company does in a different country is irrelevant to this. Note: this is my tax proposal. Not how I claim things currently work, but what I think they should be changed to. Although on a different level, I think what happens across borders absolutely does matter: I think countries should not import products created through slavery, child labour or other forms of oppression. Companies and countries should take more responsibility for the entire supply chain and not just the bits inside their own border.