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While there's certainly a lot of incentive to exploit loopholes, I think we could make it sufficiently onerous and lawsuit-prone to skirt the line that these ma
by danenania 7y ago
While there's certainly a lot of incentive to exploit loopholes, I think we could make it sufficiently onerous and lawsuit-prone to skirt the line that these massive corporations might just pay their damn taxes instead.
With fairly commonsense questions like:
- Was the company formed at Megacorp's behest?
- Is there direct coordination between Megacorp and company leadership?
- Do Megacorp and the company share business infrastructure?
- Does the company share information that would normally be private with Megacorp?
- Does the company take actions that advantage Megacorp over the company itself?
You could at least make it a serious pain in the ass with many potential pitfalls to avoid responsibility in this way.
- rtkwe 7y agoI agree those are good questions for determining if a company should be treated like a single entity but any definition for those will be endlessly argued in court where, unless funding is increased for enforcement actions, the IRS is at a disadvantage for resources. Apple Ireland for example was able to skirt something around 13 billion dollars in already low Irish taxes, that's a hell of a war chest for defending against a lawsuit. In 2019 the IRS's whole budget was something around $11 billion dollars.