3 ms·

Some industries are very low margin while others are extremely high, I don't think this is viable without breaking a huge chunk of the economy.

• manquer 5y ago
  Depends on how it is structured. One way for example could be akin to a cash (and equivalents) tax on holding large amounts. It would incentize spending the cash in r&d , acquisitions , dividends etc. Low margin companies will not be too badly affected
  • eloff 5y ago
    That's not a revenue tax anymore. That just forces companies to minimize their cash stockpiles through investment, inventory, dividends, etc. How does that make the tax system fairer?
    • manquer 5y ago
      All those categories have already taxes associated with them Expenses -( VAT/GST etc) R&D/salaries - income tax for employees Divendent - income and other taxes Acquisitions/investments - seller pays capital gain tax etc Disincentizing savings to boost the economy is not only applicable for regular people it also applies for companies. Low interest rates are really today applicable for us. Companies with billions of dollars are getting enough returns to keep cash rather than spend it.