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As the article states, this goes beyond the tax system in the US when global companies choose to book their profits elsewhere. If the US is charging x but Irela

by sushid 5y ago

As the article states, this goes beyond the tax system in the US when global companies choose to book their profits elsewhere. If the US is charging x but Ireland offers <x, then a resourceful company will book their profits there. This is a problem because the tax burden is then shifted to the middle class. And the argument that the tax system in the US is too complex for trillion dollar companies to navigate is laughable. That's arguably very true for individual taxpayers but Apple isn't parking billions in Ireland through a Double Irish Dutch sandwich because the American tax system is too complex.

nowherebeen 5y ago
Yes and the author is recommending to hike the tax rate to 25%. How does that prevent corporations from continuing to shift profits to Ireland? It doesn’t. The global minimum tax rate is only 15%. As you said yourself, as long as other countries offer less tax rate, they will continue to shift profits elsewhere. Providing a simpler tax system might not stop Apple from shifting profits, but it definitely increases the incentive to do so.
- inshadows 5y ago
  > Providing a simpler tax system might not stop Apple from shifting profits, but it definitely increases the incentive to do so. I don't think it does. As parent said, they don't do it because of complex tax system, but because of lower taxes. Why would they choose to pay higher taxes if they don't have to? What is the incentive?
  - staiz 5y ago
    Perhaps changing from the high frequency tax period of every 12 months, to every 24 months, would cut tax overheads by 50% for individuals and small business. and the compound growth of a business over 2 years than 1 year, and then being taxed, would allow businesses to grow faster, and collects more tax revenue. recuing tax frequency further to once every 4, 8 years, cuts costs, allows for more compound growth before the assets are scythed. Governments have tools at thier disposal, not available to individuals and business who are required to create value to remain solvent, such as printing money, bonds, etc. The governments should look at using these tools, the way a government has national research, education, healthcare or defence, using its privelaged / monopoly posistion to provide those services, it should provide a tax service to its people, so the citizens can create value and grow it exponentially without the annual fuedal taking the kings share of the crop routine we have as default.

by sushid 5y ago

nowherebeen 5y ago

Yes and the author is recommending to hike the tax rate to 25%. How does that prevent corporations from continuing to shift profits to Ireland? It doesn’t. The global minimum tax rate is only 15%. As you said yourself, as long as other countries offer less tax rate, they will continue to shift profits elsewhere. Providing a simpler tax system might not stop Apple from shifting profits, but it definitely increases the incentive to do so.

inshadows 5y ago
> Providing a simpler tax system might not stop Apple from shifting profits, but it definitely increases the incentive to do so. I don't think it does. As parent said, they don't do it because of complex tax system, but because of lower taxes. Why would they choose to pay higher taxes if they don't have to? What is the incentive?
- staiz 5y ago
  Perhaps changing from the high frequency tax period of every 12 months, to every 24 months, would cut tax overheads by 50% for individuals and small business. and the compound growth of a business over 2 years than 1 year, and then being taxed, would allow businesses to grow faster, and collects more tax revenue. recuing tax frequency further to once every 4, 8 years, cuts costs, allows for more compound growth before the assets are scythed. Governments have tools at thier disposal, not available to individuals and business who are required to create value to remain solvent, such as printing money, bonds, etc. The governments should look at using these tools, the way a government has national research, education, healthcare or defence, using its privelaged / monopoly posistion to provide those services, it should provide a tax service to its people, so the citizens can create value and grow it exponentially without the annual fuedal taking the kings share of the crop routine we have as default.