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If I am a smaller, poorer country (especially poor in natural resources), why would I agree to this? If giving tax breaks can attract foreign companies to my sh
by akudha 6y ago
If I am a smaller, poorer country (especially poor in natural resources), why would I agree to this? If giving tax breaks can attract foreign companies to my shore, why would I not do it?
Why should other countries make concessions for the American politicians (esp republicans) unwillingness to properly enforce the existing tax rules, make better tax code, increase funding for IRS etc?
I don't think I understand her logic, can someone ELI5?
- oblio 6y ago> If I am a smaller, poorer country (especially poor in natural resources), why would I agree to this? Well, logically, you wouldn't. Until all sort of levers start turning and you start feeling pain. How do you think this kind of thing happened historically? See: Commodore Matthew Perry & co.
- ardit33 6y agoWhy would larger countries allow/trade with you then? If you are being used as a tax avoidance loophole heaven, larger countries can just cut off any trade with you. They don't own you squat, if you will try to undermine them, then can just cut you off. All they have to say: no business in my country, are allowed to do any business with little loophole country, and no trade will be allowed between our countries. Good luck little dip-shit country, you are on your own. Which will defeat the purpose of your small tax heaven strategy. Unless your little country is a full blown 'autarky' (which is impossible now days, unless you want to look like Cuba), you will have to play by the rules of the big boys.
- EdwinLarkin 6y agoFor the same reason why larger countries dont invade smaller countries in this day and age. It benefits both sides to have some diversity.