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I assumed tax policy had something to do with it, the US taxes profit not revenue so companies like Amazon are financially incentivized to always reinvest in it
by chillacy 7y ago
I assumed tax policy had something to do with it, the US taxes profit not revenue so companies like Amazon are financially incentivized to always reinvest in itself and grow. Many European countries have a pretty hefty ~20% VAT.
- alt_f4 7y agoEU also taxes profits not revenue (I believe only with the exception to non-domestic tech companies, where revenue taxes are now being introduced), but you're right about VAT and that rate is climbing meaning stuff looks more expensive to consumers (prices are almost always shown with VAT included).
- ThePhysicist 7y agoVAT is usually not paid by companies, only by consumers. The only way it might affect companies is via reduced sales due to higher taxation of private customers.