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Simple. They pay accountants a substantial portion of the taxes not paid. The actual amount any country can tax it citizens and corporations is a complex rela
by gvb 15y ago
Simple. They pay accountants a substantial portion of the taxes not paid.
The actual amount any country can tax it citizens and corporations is a complex relationship between its own tax laws, every other country in the world's tax laws, and the cost of the tax lawyers that figure out how to shuffle funds around to minimize their tax liability.
When politicians say "we will close this loophole and collect $xxx MM more in taxes" my BS meter pegs. There is not going to be a 1:1 relationship between a loophole's current deduction and collected taxes if that loophole is closed. There will be some increase in collected taxes (presumably), but people will minimize their taxes using different "loopholes" so the "recovered taxes" will never be as much as the politicians sell it as.