> This doesn't change the fundamental fact that a tax on every transaction disincentives B2B transactions You can make the same argument about VAT. There is a

> This doesn't change the fundamental fact that a tax on every transaction disincentives B2B transactions You can make the same argument about VAT. There is a cost on every transaction (split payment, money is frozen until you get a return). The incentive would be negligible comparing to other incentives for vertically integrated companies. > progressive taxation isn't widely implemented for corporations, because it's very easy to circumvent by splitting up and increasing the number of legal entities It's getting more popular and it's easy to draft a law that splitting companies, does not reduce the taxes (see GDPR) https://taxsummaries.pwc.com/poland/corporate/taxes-on-corporate-income https://taxsummaries.pwc.com/poland/corporate/taxes-on-corpo... > sensible way around that is taxing the _ultimate beneficiary_ rather than the company itself (i.e. the owners as natural persons), which is what GP suggests with "sales tax and personal income tax on salaries and distributions". It doesn't work in practice, because of tax heavens. Also, I can have a travel blog and a youtube channel when I review cars and clothes. Would I pay close to 0 in taxes. ---- All taxes are bad, but given current global world, revenue tax seems to be better, hence the digital tax in EU.