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That’s usually the case of any kind of operation, no? If you use the infrastructure and services of a particular country its seems reasonable to pay taxes on yo
by sudhirj 5y ago
That’s usually the case of any kind of operation, no? If you use the infrastructure and services of a particular country its seems reasonable to pay taxes on your profits there.
- bradleyjg 5y agoIt does seem like a reasonable principle, which makes abolishing the corporate tax unpersuasive. If there were only a single jurisdiction the argument would be more compelling.
- zemvpferreira 5y agoIt certainly isn't impossible for nations to tax foreign individuals operating companies locally without a corporate tax. A way would be: a) similar to KYC laws, make knowing all persons who own part of a company mandatory, regardless of how many structures (corporations, trusts, whatever) you have to go through. b) preemptively tax every individual on profits/salaries/perks/payments from the company at some established rate. c) come tax season, ask for a global income statement from everyone taxed. Adjust their taxes based on whatever bracket they land in.
- magila 5y agoEven without a corporate income tax companies would still generate tax income in foreign countries where they sell goods and services, e.g. VAT/sales tax. They would also pay property tax on any physical presence they maintain and probably a myriad of other taxes depending on the country.
- bradleyjg 5y agoWhile the tax incidence (where the burden lands) of various taxes is a thorny question subject to much debate in the literature I don’t think it’s especially controversial to say that sales, property, and wage taxes are likely to have different incidences than a tax on profits.